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ADVERTISING
PROCEDURE
 Digitized by the Internet Archive
in 2018 with funding from
Kahle/Austin Foundation

https://archive.org/details/advertisingproceOOOOklep
ADVERTISING
PROCEDURE
S TH

D
EDITION

Otto Kleppner
Advertising Management Consultant

with the collaboration of

Stephen A. Greyser
Harvard University
Graduate School of Business Administration

Prentice-Hall, Inc. • Englewood Cliffs, N.J.

Library of Congress Cataloging in Publication Data

Kleppner, Otto
Advertising procedure.

Includes bibliographical references.

1. Advertising. I. Title.
HF5823.K45 1973 659.1 72-10706
ISBN 0-13-018069-6

© 1973, 1966, 1950, 1941, 1933, 1925 by Prentice-Hall, Inc.,

Englewood Cliffs, New Jersey

All rights reserved. No part of this book may be reproduced in any form
or by any means without permission in writing from the publishers.

Printed in the United States of America

FIRST EDITION FOURTH EDITION

First Printing ... .May, 1925 Thirty-Second Printing .January, 1950
Second Printing August, 1925 Thirty-Third Printing .August, 1950
Third Printing . .June, 1926 Thirty-Fourth Printing .... September, 1952
Fourth Printing ... April, 1927 Thirty-Fifth Printing .June, 1953
Fifth Printing .. January, 1928 Thirty-Sixth Printing .April, 1954
Sixth Printing . .July, 1928 Thirty-Seventh Printing .January, 1955
Seventh Printing January, 1930 Thirty-Eighth Printing .January, 1956
Eighth Printing August, 1930 Thirty-Ninth Printing .January, 1958
Ninth Printing .... June, 1931 Fortieth Printing .March, 1959
Tenth Printing .. August, 1932 Forty-First Printing .June, I960
Forty-Second Printing .March, 1962
SECOND EDITION Forty-Third Printing .June, 1965

Eleventh Printing .July, 1933 FIFTH EDITION

Twelfth Printing .September, 1933
Forty-Fourth Printing .May, 1966
Thirteenth Printing .August, 1934
Forty-Fifth Printing .September, 1966
Fourteenth Printing .January, 1935
Forty-Sixth Printing .December, 1966
Fifteenth Printing .November, 1935
Forty-Seventh Printing .July, 1967
Sixteenth Printing .September, 1936
Forty-Eighth Printing .January, 1968
Seventeenth Printing .January, 1937
Forty-Ninth Printing .October, 1968
Eighteenth Printing .July, 1938
Fiftieth Printing .May, 1969
Nineteenth Printing .September, 1939
Fifty-First Printing .May, 1970
Twentieth Printing .June, 1940 >
Fifty-Second Printing .May, 1971

THIRD EDITION SIXTH EDITION

Twenty-First Printing .April, 1941 Fifty-Third Printing .April, 1973
Twenty-Second Printing .October, 1941 Fifty-Fourth Printing September, 1973
Twenty-Third Printing . January, 1942 Fifty-Fifth Printing .. ... March, 1974
Twenty-Fourth Printing ... December, 1945
Fifty-Sixth Printing .December, 1974
Twenty-Fifth Printing .May, 1946
Fifty-Seventh Printing.November, 1975
Twenty-Sixth Printing .July, 1946
Fifty-Eighth Printing.March, 1976
Twenty-Seventh Printing .March, 1947
Fifty-Ninth Printing.March, 1977
Twenty-Eighth Printing . July, 1947
Sixtieth Printing . March, 1978
Twenty-Ninth Printing .October, 1947
Thirtieth Printing .September, 1948
Thirty-First Printing .May, 1949

Prentice-Hali. International, Inc., London

Prentice-Hali. oe Australia, Pty. Ltd., Sydney
Prentice-Hall oe Canada, Ltd., Toronto
Prentice-Hali. oe India Private Limited, New Delhi
Prentice-Hall oe Japan, Inc., Tokyo
-

To Beatrice
 Contents

I
THE PLACE
OF ADVERTISING

1 Background of Today’s Advertising 3

Beginnings. The origin of the newspaper. "Siquis,” the tack-up adver¬
tisements. Advertising comes to America. Three momentous decades—
1870-1900. Newspapers. National advertising emerges. Mass produc¬
tion appears. The advertising agency. As America enters the new century.
Advertising comes of age. Advertising in World War I. The 1920’s. The
Depression Years—the thirties. World War II and its aftermath. Tele¬
vision arrives. 1950-1970 and into the eighties.

2 Economic and Social Aspects of Advertising 24

The creative impact of the competitive system. The big swapping game.
The "trivial differential.” The "imaginary differential.” Isn’t a lot of ad¬
vertising false and misleading? Isn’t advertising a "costly armament race”?
Doesn’t the consumer have to pay for the advertising? Does mass production
always reduce production costs? Does this necessarily mean that advertising
always reduces the cost of a product to the consumer? Isn’t the fact that the
manufacturer’s nationally advertised brands cost more than the distributor’s
brands good evidence of how much advertising costs the consumer? Doesn’t
advertising foster monopolies? Doesn’t advertising confuse people by giving
them a bewildering choice of times and claims? Isn’t advertising making us
a nation of conformists? Doesn’t advertising make people want things they
can’t afford? What about advertising and imperfect competition? What
does the public and business think about advertising? Kleenex Facial Tissues:
A case report on product improvements.

3 The Roles of Advertising 49

The value goal. The marketing mix. Variations in the importance of ad¬
vertising. Advertising as affected by social trends. Other ways of viewing
advertising. Other purposes of advertising. Some examples.
 II
PLANNING
THE ADVERTISING

4 The Advertising Spiral 77

The advertising stages. 1. The pioneering stage. 2. The competitive stage.
3. The retentive stage. Shift of stage within one market. Product in differ¬
ent stages in different markets. Product in the competitive stage: detail in
pioneering stage. Difference in policies. Why be a pioneer? Comparison
of stages. After the retentive stage ? Management decisions at the retentive
stage. Using the advertising spiral to set policy. The Singer spiral saga.

5 Target Marketing 99
What is a product? What is a market? What is the competition? Market
segmentation. The profile of the market. Profile of the buyer. Sources of
usage and demographic data. The marketing strategy behind French Line
Advertising: a case report on positioning.

6 Basic Media Strategy 119

Whom are we trying to sell ? Where is the product distributed ? How much
money is available? What is the competition doing? What is the nature
of the copy? Reach versus frequency versus continuity. What about timing?
Is there a tie-in with a merchandising plan? What combination of media is
best? Computer thinking. A media problem: reaching heavy users of
instant coffee.

hi
MEDIA

7 Using Television 139

Features and advantages. Limitations and challenges. Forms of television
usage. The rate structure. Other trade practices. The Syndicate Research
Services. Elements of TV planning. Audience measurement terms. De¬
fining television markets. The basic TV plan. UHF (ultrahigh frequency)
stations. CATV: cable television. Satellite television. Trends in televi-
sion. Alpo Dog Food: a case report on the use of television.
8 Using Radio 169
Features and advantages. Limitations and challenges. Differences between
AM and FM radio. AM radio. The structure of radio advertising. Time
classifications. Rate classifications. FM appears. FM-AM unhooked.
Planning the reach and frequency schedules. Numa Programming: radio
planning by computer. The Radio Market Area. Gross Rating Points for
radio. Planning and buying radio time. Trends in radio.

9 Using Newspapers 193

Background. Features and advantages. Limitations and challenges. Forms
of newspaper advertising. How newspaper space is bought. The rate card.
The milline rate.' Newspaper sizes and makeup restrictions. The black
newspapers. The Audit Bureau of Circulations. Special newspaper repre¬
sentatives. A, B, and C newspaper schedules. Tear sheets and checking
copies. Newspaper merchandising service. Newspaper marketing data.
Selecting the paper. Color advertising. Newspaper-distributed magazine
supplements. Comics. Split runs. Preprinted (loose) inserts. Weekly
newspapers. Trends in newspapers. Why SAS went 95% newspaper: A
case report on the use of newspapers.

10 Using Magazines 219

Features and advantages. Limitations and challenges. Magazine elements.
How space is sold. Magazine circulation. Magazine merchandising services.
Farm magazines. Other magazines. Criteria for picking magazines. Trends
in magazines. Case reports on the use of magazines.

11 Outdoor Advertising, Transit Advertising 243

OUTDOOR ADVERTISING, 243
Features and advantages. Limitations and challenges. Plant operators.
Outdoor advertising circulation. Buying outdoor advertising. Criteria for
selecting outdoor signs. Adapting copy for outdoor advertising. The High¬
way Beautification Act of 1965. Trends in outdoor advertising.

TRANSIT ADVERTISING, 259

Interior Transit Advertising. Features and advantages. Limitations and
challenges. Circulation. Standard sizes. Special effects. Buying interior
transit space.
Exterior Transit Advertising. How exterior bus space is sold. Station and
platform posters. Trains and air terminals. Trends in transit advertising.

12 Supplementary Media 270

Advertising specialties. Forms of specialties. The use of specialties. Films.
Theatrical films. Sponsored films. Consumer directories—the Yellow
Pages Directory. Programs. And other forms of supplementary media.
 IV
CREATING
THE ADVERTISING

13 The Behavioral Sciences in Advertising 285

What are the behavioral sciences ? Anthropology and advertising. Sociology
and advertising. Psychology and advertising. Consumer life-styles. Models
of consumer behavior. Understanding people—a continuing study for adver¬
tising. Consumer attitudes toward beer and beer advertising: a case report.

14 The Search for the Appeal 314

Not millions, just one. The appeal. Desirable characteristics of appeals.
The search within. The research approach. Structured research. Unstruc¬
tured research. Strategy problems and decisions. A guide for action.
Consumer research on banking services: A case report on consumer question¬
naires. Sodaburst: a case of consumer research for advertising appeals and
product developments.

15 Copy 339
From appeal to total concept. The structure of an advertisement. Promise
of benefit (the headline). Amplification. Proof. Action. The style of
copy. The factual approach. The emotional approach. Slogans. Review¬
ing the copy.

16 Visualization, Layouts 35 6
VISUALIZATION, 356

LAYOUTS, 368
The layout man as editor. Getting meaningful attention. Composing the
elements. Color in advertising. Layouts for small advertisements. Differ¬
ent types of layouts. The Artist’s medium. Trade practice in commercial art
work. Legal release. Criteria for layouts. Rough to finish: layout examples.

17 Print Production 394

Typography. Typefaces. Type measurement. Type font. Making type
readable. Major typesetting methods. Hand setting. Machine setting.
Photocomposition. "Cold type"—typesetting typewriters. The major print¬
ing processes. Letterpress printing. Offset lithography. Rotogravure print¬
ing. Silk-screen printing. Photoengraving. Line plates. Halftone plates.
Halftone finishes. Duplicate plates. Making offset plates. Paper. Classes
of paper. Basic weights and sizes. Planning the work. Review of print
production.
18 The Television Commercial —

Creation and Production 428

Creating the television commercial. Types of structure. Writing the com¬
mercial. Television production. Forms of commercial production. The
production studio. The making of a commercial.

19 The Radio Commercial —

Creation and Production 445

Writing the commercial. Elements of effective radio commercials. Com¬
mercial categories. Radio production.

v
THE ADVERTISING
CAMPAIGN

20 Trademarks, Packaging 459

TRADEMARKS, 459
What is a trademark? Forms of trademarks. Creating the trademark. What
"registering” a trademark means. Putting a lock on the trademark. House
marks. Service marks: Certification marks.

PACKAGING, 469
Basic requirements. Packaging thinking. Designing a new package. Time
for a change? Testing the design. Legal aspects of packaging. The waste-
disposal problem.

21 The Dealer Program 482

Forms of dealer programs. Point-of-purchase advertising. Forms of dis¬
play. The display idea. Getting displays used. Premiums. Use of
premiums. What makes a good premium. Contests. Forms of contests.
Legal aspects. Handling contest replies. Sampling. Cents-off coupons.
Deals. Cooperative advertising.

22 Appraising Ads and Campaigns 508

Advertising goals versus marketing goals. Differences of opinion. Apprais¬
ing the individual advertisement. Appraising campaigns. Other research
methods. Research guidelines.

23 The Complete Campaign 532

The product. The trademark and the package. Pricing the product. In
what stage is the product ? Selecting the target market. How is the product
to be distributed? What is the seasonal factor? What shall be the creative
strategy and theme? Meeting specific selling problems. Creating the ad¬
vertisements and commercials. Selecting the media. Getting the budget
and campaign approved. Preparing and scheduling the advertising. Ap¬
praising the results. Summary of the steps. Fitting the image to the times,
Northwestern Mutual Life Insurance Company: a case report on a complete
campaign. Bisquick: a case report on giving new life to an old product.

VI
ADVERTISING
MANAGEMENT

The Advertising Agency 567

History. The agency business today. The work of a full-service agency.
The organization of an agency. The agency commission system. The con¬
sent decrees. Agency compensation. The full-service house agency. The
in-house agency. Two views on agency operations. Competing accounts
The agency of record. Agency networks. International agency operations.

The Media Services 583

Background. The media services appear. How media services function.
Compensation. Relationship of media services to agencies. Working with
media services. Barter. Trade-out syndicated shows.

The Manufacturer’s Advertising Department 591

Organization of the advertising department. Centralized or decentralized
control. The advertising budget.

VII
OTHER WORLDS
OF ADVERTISING

Retail Advertising 607

Differences between national and retail advertisers. Classes of retail stores.
The traditional department store. Types of advertising. A typical organi¬
zational structure. The department store advertising department. Factors
affecting the advertising budget. The retail advertising schedule. Coopera¬
tive advertising. Chain department stores. Discount stores. Supermarkets.
Specialty shops. Catalog merchandise stores. The retail media mix. News¬
papers in retailing. Radio in retailing. Television in retailing. Direct
mail advertising in retailing. Career opportunities in retail advertising.
28 Direct-Response Advertising 634
Definitions. Unique features of direct-response advertising. Types of direct-
response advertising. Direct-response copy. Direct-response media. Di¬
rect mail. Direct-response arithmetic. Direct-response testing. Planning
and producing direct-mail advertising. Television in direct-response adver¬
tising. Trends in direct-response advertising.

29 Business Advertising 658

Trade papers. Industrial advertising. The uniqueness of industrial adver¬
tising. The effectiveness of industrial advertising. Industrial publications.
Professional publications. Standard Industrial Classification Index (SIC).
Industrial advertising copy. Industrial direct mail. Catalogs and directories.
Business shows; publicity. Corporate industrial advertising—magazines.
Corporate industrial advertising—television. Corporate industrial advertis¬
ing—radio. The business end of business advertising.

30 Legal and Other Controls of Advertising 677

The Federal Trade Commission Act. Some basic FTC ground rules. The
Robinson-Patman Act. The Federal Food, Drug, and Cosmetic Act. Other
federal controls of advertising. State laws relating to advertising. Self¬
regulation by media. Self-regulation by advertisers. Self-regulation by
individual industries. The Better Business Bureaus. The National Adver¬
tising Review Council. Self-regulation by individual advertisers. Legal
releases. Copyrighting advertising.

P.S. On Getting the First Job 694

Breaking into advertising. Breaking into the advertising agency.

Appendix: Tools of Advertising 700

Glossary

Index 731
 Preface

This book deals with the management, planning, creation and use of adver¬
tising, and tries to do so in as nontechnical a manner as possible. The reader
who is seeking a broad view of advertising will find here a comprehensive
survey. The reader whose path leads him to areas of advertising responsibility
will find, I hope, insights that become ever more meaningful.
During the past decade, changes affecting advertising have been more
profound than in any comparable period, including the years following the
advent of television. These changes have been in response to the changes in
the values of our society, such as the concern for ecology and for pollution,
the impact of consumerism, and the widening role of government. Mean¬
while advertising has been undergoing changes of its own—a la carte agencies,
in-house agencies, media services, and upheavals in media. There have been
changes, too, in the philosophy of teaching advertising, and in curricula.
Mindful of all such changes, I reached into the prior edition for those things
which time has proved valid and useful, and which are significant now, and
then proceeded to write a fresh book on advertising as I see it today. In all
instances I have tried to retain those qualities of presentation that have been
so well received in prior editions.
A suggestion: For a comprehensive study, start with Chapter 1, which
begins the discussion of advertising as an institution. Those who wish to pro¬
ceed directly to the operation of advertising may prefer to start with Chapter 3,
returning later to the prior chapters. Whichever way it is used, I hope the
book will prove helpful.

Otto Kleppner

Wardsboro, Vermont
Acknowledgments

I am indebted to many for their help: Sam Vitt, in the areas of television,
radio and media services; Frank Vos, direct response advertising; David H.
Folkman, retail advertising; David Hymes, print production; Robert La-
Chance, television and radio production; Richard Briggs, outdoor and trans¬
portation advertising. For reviewing chapters in the fields of their special
interest, and for their help in other ways, too, I am grateful to Roger Barton,
Arthur Bellaire, Dr. Frederick Breitenfeld, Jr., Fred Dahl, Jerome Eisnitz,
Franklin Feldman, Richard Manville, Alfred L. Plant, Milton Seasonwein,
Fred Wittner.
For their discerning reading of the entire work, and their suggestions,
I thank Professor William J. Kehoe, Marshall University, Professor S. Bernard
Rosenblatt, Texas Tech University, Professor Irving Settel, Lubin School of
Business, Pace College, Professor C. Raymond Swain, Jr., Lubin School of
Business, Pace College, Professor Stanley Ulanoff, Baruch College of The
City University of New York, Professor Stephen I. Winter, Orange County
Community College. My debt is great also to the many teachers of advertising
who have shared their experiences and thoughts with me.
The book has been enriched by the collaboration of Professor Stephen
A. Greyser, Harvard Graduate School of Business Administration.
ADVERTISING
PROCEDURE
 I
THE PLACE
OF ADVERTISING
 Background
of Today’s Advertising

One of the oldest outdoor signs known,

this appeared over a butcher shop in Pompeii.

This book is about Advertising. What does the term bring to mind P/TVL
and radio commercials? Newspaper ads? Outdoor signs? Magazine ads?
Supermarket displays and packages? Certainly all of these are advertising.
Perhaps, however, you may think of all the money being spent on
advertising and wonder how it affects the cost of living, or whether it
couldn’t better be spent on schools or in fighting poverty and pollution. Or it
may bring to mind a Hollywood picture of a Madison Avenue agency, where
an advertising man saves a million-dollar account by breathlessly phoning the
client with a new slogan he just dreamed up. (It doesn t work that way.)
Or you may think of advertisements that you liked, or disliked. In
any case, one cannot help being aware of the influence of advertising in
our lives.
The fact is that over $22 billion a year* is being spent on American
advertising, which in its variouTforms accosts us from early-morning news
programs until the late shows at night. How did advertising become so per¬
vasive in our society? We cannot find the reasons for its importance merely
by studying the ads; we must rather understand the economic and social forces
producing them.
# * #

The urge to advertise seems to be a part of human nature; there is

evidence of it in ancient times. Of the 5,000-year recorded history of adver¬
tising right up to our present TV-satellite age, the part that is most significant
to us started when the United States began emerging as a great manufacturing
nation, about 100 years ago. However, the early history of advertising is far
too fascinating to pass by without a glimpse of it.1

3
*1972 figure, which has been advancing about one billion dollars a year.
 4 Beginnings
The Place
of
Advertising It isn’t surprising that the people who gave the world the Tower of Babel also
left the earliest known evidence of advertising. A Babylonian clay tablet of
about 3000 B.c. was found bearing inscriptions for an ointment dealer, a
scribe, and a shoemaker. Papyrus exhumed from the ruins of Thebes showed
that the ancient Egyptians had a better medium on which to write their mes¬
sages. (Alas, the announcements preserved in papyrus offer rewards for the
return of runaway slaves.) The Greeks were among those who relied on town
criers to chant the arrival of ships with cargoes of wines, spices, and metals.
Often a crier was accompanied by a musician who kept him in the right key.
Town criers later became the earliest medium for public announcements in
many European countries, as in England, and they continued to be used for
many centuries. (At this point we must digress to tell about a promotion idea
used by innkeepers in France around 1100 a.d., to tell about the fine wines
served at their taverns. They would have the town crier blow a horn, gather
a group-^and offer samples!)
Roman merchants, too, had a sense of advertising. The ruins of
Pompeii contain signs in stone or terra cotta, advertising what the shops were
selling—a row of hams for a butcher shop, a cow for a dairy, a boot for a
shoemaker. The Pompeiians also knew the art of telling their story to the
public by means of painted wall signs. Tourism rates as one of the early users
of advertising, as revealed in this advertisement on a Pompeiian wall: 2

Traveler
Going from here to the twelfth tower
There Sarinus keeps a tavern
This is to request you to enter.
Farewell

Outdoor advertising has proved to be one of the most enduring, as

well as one of The oldest, forms of advertising. It survived~the~ decline of the
Roman Empire to become the decorative art of the inns in the seventeenth
and eighteenth centuries. That was still an age of widespread illiteracy, and
inns, particularly, vied with each other in creating attractive signs that all could
recognize. This accounts for the charming names of old inns, especially in
England—such as the Three Squirrels, the Man in the Moon, the Hole in the
Wall. In 1614, England passed a law—probably the earliest on advertising—
that prohibited signs extending more than eight feet out from a building.
(Longer signs pulled down too many house fronts.) Another law required
signs to be high enough to give clearance to an armored man on horseback. In
1740, the first printed outdoor poster (referred to as a "hoarding”) appeared
in London.
 5
Background
of Today’s
Werbung

Outdoor Signs of the Seventeenth Century

These signs appeared over inns:

A. Hog in Armour F. Hole in the Wall
B. Three Squirrels "A Guide for Malt Worms”
C. Goose and Gridiron G. Bull and Mouth
D. The Ape H. Harrow and Doublet
E. King’s Porter and Dwarf 1. Man in the Moon
/. Barley Mow
 ; 6 The Origin of the Newspaper
The Place
°f
Advertising The next most enduring medium, the newspaper, was the offspring of Guten¬
berg’s invention of printing from movable type (about 1438), which, of
course, changed communication methods for the whole world. About 40 years
after the invention, Caxton of London printed the first advertisement in
English—a handbill of the rules for the guidance of the clergy at Easter. This
was tacked up on church doors. (It became the first printed outdoor advertise¬
ment in English.) But the printed newspaper took a long time in coming. It
really emerged from the newsletters, handwritten by professional writers, for
the nobles and others who wanted to be kept up to date on the news, especially
of the court, and other important events—very much in the spirit of the Wash¬
ington newsletters of today.
The first advertisement in any language to be printed in a disseminated
sheet appeared in a German news pamphlet about 1525. And what do you
think this ad was for? A book extolling the virtues of a mysterious drug.
(There was no Food and Drug Administration in those days.) But news
pamphlets did not come out regularly; one published in 1591 contained news
of the previous three years. It was from such beginnings, however, that the
printed newspaper emerged. The first printed English newspaper came out
in 1622—the Weekly Newes of London. The first advertisement in an English
newspaper appeared in 1625.

'Siquis/’ the Tack-up Advertisements

The forerunner of our present want ads bore the strange name of siquis. These
were the tack-up advertisements that appeared in England at the end of the
fifteenth century. Of these, Presbrey says:

These hand-written announcements for public posting were done by

scribes who made a business of the work. The word "advertisement”
in the sense in which we now use it was then unknown. The advertis¬
ing bills produced by the scribes were called "Siquis,” or "If anybody,”
because they usually began with the words "If anybody desires” or "If
anybody knows of,” a phrase that had come from ancient Rome, where
public notices of articles lost always began with the words "Si quis.”

First use of manuscript siquis was by young ecclesiastics advertising

for a vicarage. . . . Soon the siquis poster was employed by those
desiring servants and by servants seeking places. Lost articles likewise
were posted. Presently also tobacco, perfume, coffee, and some other
luxuries were thus advertised. The great percentage of siquis, how¬
ever, continued to be of the personal, or want-ad, type.3
Advertising in the English newspapers continued to feature similar personal 7Back round
and local announcements. As evidence of the high interest classified adver- 0j today’s
tisements have long had in England, the London Limes, until a few years ago, Advertising

filled their first page with classified advertising.

Advertising Comes to America

The Pilgrims arrived on American shores before the Weekly Newes of Lon¬
don was first published, so they had little chance to learn about newspapers,
but the colonists who followed them had, and the first American newspaper;
to carry advertisements appeared in 1704—the Boston Newsletter (note the
newsletter identification). It carried an advertisement offering a reward for
the capture of a thief and the return of several sorts of men’s apparel—more
akin to the advertisement offering a reward for the return of slaves, written
on Egyptian papyrus thousands of years before, than it was to the advertising
printed in the United States 250 years later. By the time the United States
was formed, the colonies had 30 newspapers.4 Their advertising, like that of
the English newspapers of that time, consisted mostly of ads we describe today
as classified and local.
However, neither those ads nor all the ads appearing in the millenia
between them explain the role of advertising since the Industrial Revolution.
The history of advertising in the United States is unique, because industrializa¬
tion took hold just as the country was entering its era of greatest growth;
population was soaring, factories were springing up, railroads opened the
West. The United States entered the nineteenth century as an agricultural
country, following European marketing traditions, and ended the century as
a great manufacturing nation, creating its own patterns of distribution. A new
age of advertising had begun.
We pick up the story around 1870, when this era of transition was
crystallizing.

Three Momentous Decades—1870-1900

Transportation. Here was a country 3,000 miles wide. It had sweeping

stretches of rich farmland. It had minerals and forests. It had factories within
reach of the coal mines. It had a growing population. But its long-distance
transportation was chiefly by rivers and canals.
Railroads today are fighting for their survival, but 100 years ago they
changed a sprawling continent into a land of spectacular economic growth. In
1865, there were 35,000 miles of railroad trackage in the United States. By
1900, this trackage was 190,000 miles. Three railroad lines crossed the Missis-
 8 sippi and ran from the Atlantic to the Pacific. Feeder lines and networks
The Place
spread across the face of the land. Where railroads went, people went, found¬
°f
Advertising ing farms, settlements, and cities across the continent, and not limited to the
waterways. The goods of the North and the East could be exchanged for the
farm and extractive products of the South and the West. Never before had a
country revealed such extensive and varied resources. Never since has so vast
a market without a trade or language barrier been opened. This was an exciting
prospect to manufacturers.

The people. In 1870, the population of the United States was 38

million. By 1900, it had doubled. In no other period of American history
has the population grown so fast. This growth in population, which included
those now freed from slavery, meant an expanding labor force in the fields,
factories, and mines; it meant a new consumer market. About 30 percent of
this growth was from immigrants. But all the European settlers before them
had been immigrants, or descendants of immigrants, who had had the courage
to pull up stakes and venture to the "New World," a land far away and strange
to them, in search of a new and better life. The result was a society that was
mobile, both in readiness to move their homes and in aspirations to move
upward in their life-styles.

Inventions and production. The end of the nineteenth century was

marked by many notable inventions and advances in the manufacture of
goods. Among these were the development of the electric motor and of AC
power transmission, which relieved factories of the need to locate next to
water sources, thus opening the hinterland to development and growth. The
internal-combustion engine was perfected in this period; the automobile age
was soon to follow.
It was the age of fast communications; the telephone, telegraph, type¬
writer, the Mergenthaler linotype and high-speed presses—all increased the
ability of people to communicate with each other.
In I860, 7,600 patent applications were filed in Washington. By
1870, this number had more than doubled, to 19,000; by 1900, it had more
than doubled again, to 42,000.5
Steel production has traditionally served as an index of industrial ac¬
tivity. While 20 thousand tons of steel were produced in 1867, 10 million tons
were produced in 1900.6 There is also a direct correlation between the power
consumption of a country and its standard of living. By 1870, 3 million horse¬
power were available; by 1900, this capacity had risen to 10 million.7 More
current being used means more goods being manufactured; it also means that
more people are using it for their own household needs—all of which is a
good economic index.
The phonograph and the motion picture camera, invented at the turn
of the century, added to the life-style of people at that time.
 CITY HALL, LAWRENCE, MASS.
Monday Evening, May 28
1
THE MIRACLE

%
WONDERFUL
p
□
DISCOVERY

OF THE AGE
A
Prof. A. Graham Bell, assisted by Mr. Frederic A.
Gower, will give an exhibition of his wonderful and
miraculous discovery The Telephone, before the people
of I^awrence as above, when Boston and Lawrence will
be connected via the Western Union Telegraph and vocal
and instrumental music and conversation will be trans¬
mitted a distance of 27 miles and received by the audience
in the City Hall.
Prof. Bell wilj .give an explanatory lecture with this
marvellous exhibition.
Cards of Admission, 35 cents
Reserved Seats, 50 cents
Sale of seats at Stratton’s will open at 9 o’clock.
The first telephone ad—1877.

The Columbian exhibition in Chicago, in 1893, was attended by

millions of Americans, who returned home breathlessly to tell their friends
about the new products they had seen.

Newspapers

Since colonial times, newspapers had been popular in the United States. In
the 1830’s, the penny newspaper came out. In 1846, Hoe patented the first
rotary printing press, and in 1871 he invented the Hoe web press, which prints
both sides of a continuous roll of paper and delivers folded sheets. By the end
of the nineteenth century, about 10,000 papers were being published, with an
estimated combined circulation of 10 million. Ninety percent of them were
weeklies, most of the rest dailies, published in the county seat with farm and

9
 10 local news. By 1900, twenty of the largest cities had their own papers, some
The Place
with as many as 16 pages. Newspapers were the largest class of media at this
of 8
Advertising
To save buying their own paper, many editors (who were also the
publishers) bought their paper with one side of the sheet already printed
with world news and items of general interest to farmers, and with ads. They
would then print the other side with their own local news, and with such ads
as they could obtain. Or else they would insert such pages in their own four-
page papers, offering an eight-page paper to their readers.

The religious publications. Today, religious publications represent

a very small part of the total media picture, but for a few decades after the
Civil War, religious publications were the most influential medium. They
were the forerunners of magazines. The post-Civil War period was a time
of great religious revivals, marking also the beginning of the temperance
movement. Church groups issued their own publications. Many of these had
circulations of no more than 1,000; the biggest ran to 400,000. But the com¬
bined circulation of the 400 religious publications was estimated at about 5
million.
Religious publications had great influence among their readers, a fact
that patent-medicine advertisers recognized to such an extent that 75 percent
of all the religious publication advertising was for patent medicines. (Many
of the temperance papers carried the advertising of preparations that proved
to be 40 percent alcohol. Today we call that 80-proof whiskey.)

Magazines. Most of what were called magazines before the 1870’s—

including Ben Franklin’s effort in 1741—lasted less than six months, and for
a good reason: They consisted mostly of extracts of books and pamphlets, es¬
says, verse, and communications of dubious value.9 Magazines as we know
them today were really born in the last three decades of the nineteenth cen¬
tury. Many factors were in their favor. The rate of illiteracy in the country
had been cut almost in half, from 20 percent in 1870 to little over 10 percent
in 1900.10 In 1875, railroads began carrying mail, including magazines, across
the country. In 1879, Congress established the low second-class postal rate
for publications, a subject of controversy to this day, but a great boon to maga¬
zines even then. The Hoe high-speed rotary press began replacing the much
slower flatbed press, speeding the printing of magazines. The halftone method
of reproducing photographs as well as color artwork was invented in 1876,
making the magazines more enticing to the public. (Godey’s Lady’s Book, a
popular fashion book of the age, had previously employed 150 women to
hand-tint all its illustrations.)
Costly literary magazines now appeared—Harper’s Monthly, Atlantic
Monthly, Century—but the publishers did not view advertising kindly at first.
Even when, at the turn of the century, Fletcher Harper condescended to 11
Background
"desecrate literature with the announcements of tradespeople,” he placed all of Today’s
the advertising in the back of the book.11 Advertising

Inspired by the success of popular magazines in England, a new breed

of publishers came forth in the 1890’s to produce magazines of entertainment,
fiction, and advice—forerunners of today’s women’s and general magazines.
Magazines brought the works of Kipling, H. G. Wells, Mark Twain, and
Conan Doyle to families across the face of the land. By 1902, Munsey’s had a
circulation of 600,000; Cosmopolitan, 700,000; Delineator, 960,000; while
the Ladies’ Home Journal hit the million mark—great feats for the age.12
The ten-cent magazine had arrived.
The number of pages of advertising that magazines carried would
make some of today’s advertising directors of magazines blink. Harper’s
published 75 pages of advertising per issue; Cosmopolitan, 103 pages; Mc¬
Clure’s, 120 pages. Between 1880 and 1890, magazine advertising more than
doubled. Magazines made possible the nationwide sale of products; they
brought into being nationwide advertising.

Patent-medicine advertising. Patent-medicine advertisers had been

around for a long time, and by the 182&ls they were the largest category of_
advertisers. After the Civil War, millions of men returned to their homes,
North and South, many of them weak from exposure; many needed medical
aid, and the only kind available to most of them was a bottle of patent medi¬
cine. As a result, patent-medicine'advertising dominated the media toward
the end of the nineteenth century—incidentally, with its fraudulent claims,
giving all advertising a bad name.

National Advertising Emerges

Meanwhile, legitimate manufacturers saw a new world of opportunity open¬

ing before them in the growth of the country. They saw the market for con¬
sumer products spreading. Railroads could now carry their merchandise to all
cities between the Atlantic and Pacific coasts. The idea of packaging their own
products, carrying their own trademarks, was enticing, particularly to grocery
manufacturers; for now they could build their business upon their reputation
with the consumer, and not be subject to the caprices and pressures of jobbers
who, in the past, had been their sole distributors. Now magazines provided
the missing link in marketing—that of easily spreading word about their
products all over the country, with advertising., Quaker Oats cereal was among
the first to go this marketing route, followed soon by many others.
This was the development of national advertising, as we call it today,
in its broadest sense, meaning the advertising by a producer of his trademarked
product, whether or not it has attained national distribution.
 12
Leaders in National Advertising in 1890’s
The Place
of
Advertising A. P. W. Paper Gold Dust Washing Powder
Adams Tutti Irutti Gum Gorham’s Silver
/Eolian Company Gramophone
American Express Traveler’s Cheques Great Northern Railroad
Armour Beef Extract H-0 Breakfast Food
Autoharp Hamburg American Line
Baker’s Cocoa Hammond Typewriter
Battle Ax Plug Tobacco Hartford Bicycle
Beardsley’s Shredded Codfish Hartshorn’s Shade Rollers
Beeman’s Pepsin Gum Heinz’s Baked Beans
Bent’s Crown Piano Peter Henderson & Co.
Burlington Railroad Hi res’ Root Beer
Burnett’s Extracts HofFman House Cigars
California Fig Syrup Huyler’s Chocolates
Caligraph Typewriter Hunyadi Janos
Castoria Ingersoll Watches
A. B. Chase Piano Ives & Pond Piano
Chicago Great Western
Chicago, Milwaukee & St. Paul Railroad
Chicago Great Western Railway
i
Ivory Soap
aeger Underwear
iirk’s American Family Soap
Chocolat-Menier Kodak
Chickering Piano Liebeg’s Extract of Beef
Columbia Bicycles Lipton’s Teas
Cleveland Baking Powder Lowney’s Chocolates
Cottolene Shortening
Cook’s Tou rs
Crown Pianos
i
Lundborg’s Perfumes
ames McCutcheon Linens
)r. Lyon’s Toothpowder
Crescent Bicycles Mason & Hamlin Piano
Devoe & Raynolds Artist’s Materials Mellin’s Food
Cuticura Soap Mennen’s Talcum Powder
Derby Desks Michigan Central Railroad
De Long Hook and Eye
Diamond Dyes
Dixon’s Graphite Paint
i
Monarch Bicycles
. L. Mott Indoor Plumbing
lunsing Underwear
Dixon’s Pencils Murphy Varnish Company
W. L. Douglas Shoes New England Mincemeat
Edison Mimeograph New York Central Railroad
Earl & Wilson Collars North German Lloyd
Elgin Watches Old Dominion Line
Edison Phonograph Oneita Knitted Goods
Everett Piano Packer’s Tar Soap
Epps’s Cocoa Pearline Soap Powder
Estey Organ Peartltop Lamp Chimneys
Fall River Line Pears’ Soap
Felt & Tarrant Comptometer Alfred Peats Wall Paper
Ferry’s Seeds Pettijohn’s Breakfast Food
Fisher Piano Pittsburgh Stogies
Fowler Bicycles Pond’s Extract
Franco American Soup Postum Cereal
Garland Stoves Prudential Insurance Co.
Gold Dust Quaker Oats

From Frank Presbey, History and Development of Advertising (Garden City, N.Y.: Double¬
day & Co., 1929), p. 361.
Mass Production Appears 13
Background
of Today’s
The words "chauffeur,” "limousine,” "sedan,” remind us that the earliest Advertising

motorcars were made in France. In the United States, as in France, they were
practically handmade at first. But in 1913, Henry Ford decided that the way
to build cars at low cost was to make them of standardized parts, and bring
the work to the man on the assembly-line belt. He introduced to the world a
mass-production technique, and brought the price of a Ford down to $265 by
1925. But mass production is predicated, in a free society, upon mass selling—
another name for advertising. Mass production makes possible countless
products at a cost the mass of people can pay, and about which they learn
through advertising. America was quick to use both.

The Advertising Agency

We have been speaking of the various media and their advertising. Now a
word about how the media got much of that advertising—through the ad¬
vertising agency, which started out as men selling advertising space for out-
of-town newspapers on a percentage basis; later they also prepared the ads.
The story of the advertising agency is deeply rooted in the growth of American
industry and advertising. Later in the book, we devote a whole chapter to the
American agency, from its beginnings to its latest patterns of operation. Until
then, we need keep in mind only that the advertising agency has always been
an active force in developing the use of advertising.

As America Enters the New Century . . .

The moral atmosphere of business as it developed after the Civil War reflected
laissez-faire policy at its extreme. There was corruption of high government
officials by the railroads, swindling of the public by flagrant stock-market
manipulations, shipment of embalmed beef to soldiers in the Spanish-
American War. Advertising contributed to the immorality of business, with
its patent-medicine ads offering to cure all the real and imagined ailments of
man. There was a "pleasing medicine to cure cancer,” another to cure cholera.
No promise of a quick cure was too wild, no falsehood too monstrous.

The Pure Food and Drug Act (1906). As early as 1865, the New
York Herald-Tribune had a touch of conscience and eliminated "certain
classes” of medical advertising—those that used "repellent” words. In 1892,
the Ladies’ Home Journal was the first magazine to ban all medical advertising.
The Ladies’ Home Journal also came out with a blast by Mark Sullivan, re¬
vealing that codeine was being used in cold preparations, and a teething syrup
 smi

...

ELECTRIC BELTS.

Try it and be Convinced.

DISCOUNT, ONE-THIRD.
.

PARALYSIS,
NEURALGIA,
RHEUMATISM,
SPINAL IRRITATION,
NERVOUS EXHAUSTION

One of the Milder

THE BELT FOR THE MILLION. Patent Medicine Ads

Warranted Equal to any of the High Priced Belts and Sold at a REASONABLE Price.

^Manufactured by the^fey? "Electricity” was the new

Common Sense Electric Belt Co. magic power of the 1890s,
Pat. Sejt. 20,1881. CHICACO, ILL.
here offered in the form of a
Price, according to quality, $3,00, $4 JO and $5.00 each. curative belt.
Sent by mail on receipt of price. Address your orders- to our agents,
Reprinted from Adelaide Hecht-
CHAS. TRCJAX & CO.
linger, The Great Patent Medi¬
cine Era (New York: Grosset &
Dunlap, Inc., 1970). Copyright
© by Grosset & Dunlap, Inc.

had morphine as its base. Public outrage reached Congress, which in 1906
passed the Pure Food and Drug Act—the first federal law to protect the
health of the public, and the first to control advertising.

The Federal Trade Commission Act (1913). But in addition to

passing laws protecting the public from unscrupulous business, Congress
passed a law protecting one businessman from the unscrupulous behavior of

14
another, in the form of the Federal Trade Commission Act, which said, in 13
Background
effect, "Unfair methods of doing business are hereby declared illegal." John of Today’s
D. Rockefeller, founder of the Standard Oil Company, got together with Advertising

some other oilmen in the early days of his operation and worked out a deal
with the railroads over which they shipped their oil. They arranged not only
to get a secret rebate on the oil they shipped, but also to get a rebate on all
the oil their competitors shipped. Result: They were able to undersell their
competition, and drive them out of business. What was considered smart
business in those days would be a violation of the antitrust laws today.13
In time, the FTC, as it is known, extended its province to protecting
the public against misleading and deceptive advertising—a matter of which
all who are responsible for- advertising today are very much aware.
Of this period of exposure and reform, James Truslow Adams, the
historian, said, "America for the first time was taking stock of the morality of
everyday life."

Advertising Comes of Age

Around 1905, there emerged a class of advertising men who recognized that
their future lay in advertising legitimate products and in earning the con¬
fidence of the public in advertising. They gathered with like-minded men in
their community to form advertising clubs.

Advertising gets organized. They subsequently formed the Associ¬

ated Advertising Clubs of the World (now the American Advertising Federa¬
tion). In 1911, they launched a campaign to promote "Truth in Advertising.”
In 1916, they formed vigilance committees; these developed into today’s
Better Business Bureaus (now an autonomous organization), which continue

The FIRST ANNUAL

EXHIBITION OF
ADVERTISING ART
To be held in the Galleries of The
From Ernest Elmo Calkins,
NATIONAL ARTS CLUB
And Heavy Not (New York:
Charles Scribner’s Sons, 1946),
14 Gramercy Park, New York
p. 171.
February 19 to March 1, 1908
 16 to deal with many problems of unfair and deceptive business practices, and
The Place
which, in 1971, became a part of the Advertising Review Council, an all¬
°f
Advertising industry effort at curbing misleading advertising. The main constituency of
the American Advertising Federation continues to be that of the local adver¬
tising clubs. On its board are also officers of the other advertising associations.
In 1910, the Association of National Advertising Managers was
born. It is now known as the Association of National Advertisers (ANA), and
has about 500 members, including the foremost advertisers. Its purpose is to
improve the effectiveness of advertising from the viewpoint of the advertiser.
In 1917, the American Association of Advertising Agencies was formed to
improve the effectiveness of advertising and of the advertising-agency opera¬
tion. Over 75 percent of all national advertising today is placed by its mem¬
bers, both large and small.
In 1911, Printers’ Ink, the leading advertising trade paper for many
years, prepared a model statute for the state regulation of advertising, de¬
signed to "punish untrue, deceptive or misleading advertising.” The Printers’
Ink Model Statute has been adopted in its original or modified form in 44
states, where it is still operative.
Up to 1914, many publishers were carefree in their claims to circu¬
lation. An advertiser had no way of verifying what he got for his money. But
in that year, a group of advertisers, agencies, and publishers established an
independent auditing organization, the Audit Bureau of Circulations, which
conducts its own audits and issues its own reports of circulation. Most major
publications belong to the ABC, and an ABC circulation statement is highly
regarded in media circles. The ABC reports of circulation are fully accredited
in most areas. (Today, similar auditing organizations are operating in 25
countries throughout the world.)
In June 1916, President Woodrow Wilson addressed the_Associated
Advertising Clubs of the World convention in Philadelphia—the first presi¬
dent to give public recognition to the importance of advertising. Advertising
had come of age!

Advertising in World War I

When the United States entered World War I in 1917, a number of advertis-
ing agency and media men offered their services to the government but were
turned down, for, as Woods reports, "Government officials, particularly Army
chiefs, believed in orders and edicts, not persuasion.” 14
But when these groups offered their services to the Council of Na¬
tional Defense, they were welcomed and became the Division of Advertising
of the Committee of Public Information—the propaganda arm of the gov¬
ernment.
 Their first job was to help get all eligible men to register. By their 17
Background
efforts, 13 million men registered in one day without serious incident. The of Today’s
committee also succeeded in having advertisers use their own paid space to Advertising

advertise Liberty Bonds, the Red Cross, and the messages of the Fuel Adminis¬
tration, to use less fuel, and the Food Administration, to observe its meatless
and wheatless days.

The 1920’s

The 1920’s began with a minidepression and ended with a crash.

When the war ended, makers of army trucks had been able to convert
quickly to commercial trucks. Firestone spent $2 million advertising "Ship
by Truck.” With the industry profiting by the good roads that had been built,
truck production jumped from 92,000 in 1916 to 322,000 in 1920. Trucking
spurred the growth of chain stores, which led, in turn, to supermarkets and
self-service, because of door-to-door delivery from manufacturer to retailer.
The passenger-car business boomed, too, and new products appeared
in profusion—electric refrigerators, washing machines, electric shavers, and,
most incredible of all, the radio. Installment selling made hard goods avail¬
able to all. And all the products needed advertising.

Radio arrives. Station KDKA of Pittsburgh was on the air broad¬

casting the Harding-Cox election returns in November 1920, even before its
license to operate had cleared. That didn’t come through until 1921.15 Many
other stations soon began broadcasting. There were experimental networks
over telephone lines as early as 1922. The first presidential address to be
broadcast (by six stations) was the message to Congress by .President Coolidge
in 1923. The National Broadcasting Company started its network broadcast¬
ing in 1926 with six stations and had its first coast-to-coast football broadcast
in 1927. That was the year, too, that the Columbia Broadcasting System was
founded, and the Federal Radio Commission (now the Federal Communica¬
tions Commission) was created.
The making of radio sets proved to be a boon to industry. According
to Settel,

Radio created one of the most extraordinary new product demands in

the history of the United States. From all over the country, orders for
radio receiving sets poured into the offices of manufacturers. Said
Radio Broadcast Magazine in its first issue, May 1922:

"The rate of increase in the number of people who spend at least a

part of their evening listening in is almost incomprehensible. . . .
It seems quite likely that before the market for receiving apparatus
 18 becomes approximately saturated, there will be at least five million
The Place receiving sets in this country.” 16
of (Author’s note: In 1970, there were over
Werbung
330 million radio sets in use.)

Everything boomed in the mid-twenties—business boomed, adver¬

tising boomed. The issue of the Saturday Evening Post of December 7, 1929,
is historic. It was the last issue whose forms closed before the stock-market
crash in the fall of 1929. The magazine was 268 pages thick. It carried 154
pages of advertising.17 The price: 5^ a copy. Never again would the Saturday
Evening Post attain that record. Never again has any magazine approached it.
It was the end of an era.

The Depression Years—the Thirties

Much has been written about the tragedy that descended on the land in the
1930’s; these reports are not exaggerated. Out of this debacle, three factors
emerged that directly relate to advertising today.
The first of these was the emergence of radio as a major advertising
medium. In March 1933, President Franklin D. Roosevelt made the first
inaugural address ever to be broadcast By 'radio, giving heart and hope to a
frightened people. His line, "We have nothing to fear except fear itself,”
spoken to the largest audience that had ever heard the voice of one man,
became historic. In one broadcast, radio showed its power of moving a nation.
Radio had arrived as one of advertising’s major national media.
During all the depression years, radio programs gave cheer with their
newly developed art of the soap opera, with their music, and with their star
comedians, such as Fred Allen and Jack Benny. The Sunday night radio net¬
work shows gave a troubled people something to which they could look
forward each week. Radio maintained its status as a prime medium until tele¬
vision came along.
Second was the passage of the Robinson-Patman Act (1936) to help
protect the little merchant from the unfair competition of the big store, with
its huge buying power. This law is operative today, especially in regard to
cooperative advertising and deals.
Third was the passage of the Wheeler-Lea Act (1938), giving the
Federal Trade Commission more direct and sweeping powers over advertising;
and the Federal Food, Drug and Cosmetic Act (1938), giving the adminis¬
tration authority over the labeling and packaging pf these products, and still
effective today. These laws were in response to public reaction against the
abuses of advertising, spurred by the intense competition of the time.
World War II and Its Aftermath 19
Background
of Today’s
With the coming of World War II, industry turned to war production. Goods Advertising

were rationed even to old customers. Why tease the customers with advertis¬
ing? Yet many advertisers held that although they might be out of merchandise,
they were not out of business. They wanted to hold the goodwill of their
customers. Many used advertising to explain their conversion to war work.
Others suggested ways to stretch the supply of their goods.
The government turned to the advertising community to help sell
its war bonds, and in other public-relations problems arising from the war.
A group of advertisers, publishers, and agencies created the War Advertising
Council. So successful was this pooling of advertising effort that the organiza¬
tion, now the Advertising Council, continues its public service to this day.

Television Arrives

In 1939, television had its public debut, when President Franklin D. Roose¬
velt formally opened the New York World’s Fair by telecast from Washing¬
ton. It was a thrilling experience for viewers at the World’s Fair. This was
also the year of the first telecast of a baseball game, a football game, a boxing
match. Station WNBT, New York, received the first grant for regular tele¬
vision operation in 1941.18
During the war, manufacture of consumer TV sets was suspended;
then after the war, there was a freeze on television while the government de¬
cided upon which circuit would be the standard one, and also on questions of
frequency allocations. The freeze was lifted in 1952.
At this point we let these figures tell the story of television:

TV Advertising Expenditures

1950 $ 171 million

1955 1,025 million
1960 1,590 million
1970 3,665 million 19

And here is what happened to radio, the medium most affected:

Radio Advertising Expenditures

1940 $ 216 million

1950 605 million
1955 545 million
1960 692 million
1970 1,278 million 20
 20 From these figures, we see that radio was slowed in its growth when TV came
The Place along, but that within the past decade it has doubled its previous peak. How
°f
Advertising it did so is one of the many reports of advertising about which we shall be
reading.
In keeping with our basic interest in understanding the forces outside
advertising that affect it, here are some of the facts that have manifested them¬
selves since the 1950’s and that reach toward the 1980’s:

1950-1970 AND INTO THE EIGHTIES

_The population of the United States grew from 151 million in 1950
to over 204 million in 1970. By 1985 it is predicted to be 245
million. One third of the expected total increase in the popula¬
tion by 1985 will be in the 25-34 age group. The years through
1985 represent the era of the young marrieds.21
—Up to 1920, most of America lived on farms and in small towns,
with modest changes in living standards. By 1920 the tide had
turned; most Americans now lived in cities. But the population
continued to be mobile; one fifth move each year. In 1970, the
largest segment of the population lived in the suburbs.22
—In 1950, two million students were enrolled in American colleges.
In 1970, the number was seven million—a rate of increase ten
times that of the total population. By 1980, the number is an¬
ticipated to be eleven million.23
_Young adults today are better educated, more involved with social
problems, and more articulate than the preceding generations.
They are more concerned with the fundamental beliefs of our
society, its goals, and its values. Advertising faces a more critical
audience.
_In 1950, 19,000 trademarks were filed for registration in Wash¬
ington. In 1970, the number was 33,000, each representing a
new product.24 Many of these products will never reach the
market, but among those that do will be the important advertised
products of the future.
_Fifty-two percent of the 1970 dollar sales in supermarkets was
generated by products that were nonexistent ten years before.25
Two thirds of the products people will buy in 1985 are still to
be developed. What’s more, of all the children in grades one
through six, about one half will be employed in occupations that
do not yet exist.26
—The four-day workweek and longer vacations are upon us, giving
more freedom for leisure pursuits.

This is the environment in which advertising operates today—in the

words of Morison, "promoting the revolution of rising expectations." 27
 Review Questions 21
Background
1. Can you name some of the earliest —productivity of Today’s
places where advertising was used? —media Advertising
Describe what it was like and what —advertising
it was used for.
6. What was the effect of the railroads
2. About what year was printing in¬ on the sale of merchandise? maga¬
vented? About what year did the zines? national advertising?
first newspaper appear in England?
Briefly, what were the highlights in 7. What kind of problems led to the
the use of advertising between those Pure Food & Drug Act of 1905 ?
two dates?
8. Name some of the major advertising
3. The American colonies, and the organizations started between 1900
early United States cities, had news¬ and 1917, and their purposes.
paper advertising along the same
9. What gave impetus to mass produc¬
lines as the early English news¬
tion in the 1920s; what was the ef¬
papers. What was the chief kind of
fect on advertising?
advertising they carried?
10. What effect did radio have on ad¬
4. How did the Industrial Revolution
vertising in the 1930s and 1940s?
affect advertising?
11. After World War II the govern¬
5. Comment briefly on the causes and
ment put a freeze for several years
nature of the growth of the United
on licenses for TV broadcasting.
States between 1870 and 1900 in re¬
Why?
spect to:
—population 12. What have been the major changes
—expansion in marketing and advertising that
—transportation you can remember?

Reading Suggestions

Two definitive books on the history of Jones, Robert W., Journalism in the
advertising are: United States. New York: E. P. Dut¬
Presbrey, Frank, History and Develop¬ ton & Co., 1947.
ment of Advertising. Garden City, Larwood, Jacob, and John L. Hotten,
N.Y.: Doubleday, Doran & Co., 1929- The History of Signboards from the
Wood, James Playsted, The History of Earliest Times. London: Chatto &
Advertising. New York: Ronald Windus, 1875.
Press Co. 1958. Morison, Samuel Eliot, The Oxford His¬
tory of the American People. New
Other books of interest:
York: Oxford University Press, 1965.
Calkins, Earnest Elmo, & Ralph Holden,
Mott, Frank L., History of American
Modern Advertising. New York:
Magazines. Cambridge, Mass.: 1957.
Appleton-Century Co. 1905.
Calkins, Earnest Elmo, "And Hearing Sampson, Henry, A History of Advertis¬
Not.” New York: Charles Scribner’s ing from the Earliest Times. London:
Sons, 1946. Chatto & Windus, 1875.
Hotchkiss, George Burton, Milestones Turner, Ernest Sackville, The Shocking
of Marketing. New York: The Mac¬ History of Advertising. New York:
millan Company, 1938. E. P. Dutton & Co., Inc., 1953.
 22 Footnotes
The Place
of
Advertising l Sources:

Frank Presbrey, History and Development of Advertising (New York: Doubleday

and Company, Inc., 1929).
James Playsted Wood, The History of Advertising (New York: The Ronald Press
Company, 1958).
Jacob Larwood and John Camden Hotten, The History of Signboards from the
Earliest Times, new ed. (London: Chatto & Windus, 1898).
Henry Sampson, A History of Advertising from the Earliest Times (London: Chatto
& Windus, 1875).
Erwin Paneth, Entwicklung der Reklame vom Altertum Bis Zur Gegenwart (Munich:
von R. Oldenbourg, 1926).
2 Presbrey, History and Development of Advertising, p. 8.

3 Ibid., p. 17.
4 Robert W. Jones, Journalism in the United States (New York: E. P. Dutton &
Co., Inc., 1947), p. 21.
5 The Story of the United States Patent Office, 4th ed. (Washington, D.C.: U.S. De¬
partment of Commerce, 1965), p. 36.
6 Samuel Eliot Morison, The Oxford History of the American People (New York:
Oxford University Press, Inc., 1965), p. 743.
7 Fred Albert Sharwen, Economic History of the People of the U.S. (New York:
The Macmillan Company, 1934), p. 442.
8 Alfred McClung Lee, The Daily Newspaper in America (New York: The Mac¬
millan Company, 1937), pp. 711-13.
9 Jones, ]ournalism in the United States, p. 296.
10 Historical Statistics of the United States, Colonial Times to 1937, A Statistical
Abstract Supplement, Series H 407—411 (Washington, D.C.: Bureau of the Census,
I960), p. 104.
14 Earnest Elmo Calkins, And Hearing Not (New York: Charles Scribner s Sons,
1946), p. 28.
12 Earnest Elmo Calkins and Ralph Holden, Modern Advertising (New York:
Appleton-Century-Crofts, 1905), p. 76.
13 Ida M. Tarbell, History of the Standard Oil Company (New York: McClure,
Phillips & Co., 1904).
14 Wood, The History of Advertising, pp. 354-55.
15 Federal Communications Commission, INF Bulletin No. 213, issued February

1970.
48 Irving Settel, A Pictorial History of Radio (New York: Citadel Press, Inc.,
I960), p. 41.
47 Hand count by author.
48 Federal Communications Commission, Bulletin No. 2—B, October 1970, p. 3.

49 Printers’ Ink compilation.

29 Ibid.
24 Estimate by Dr. George H. Brown, director, Bureau of the Census, in a speech
at Downtown Economics Club, New York, October 7, 1970.

22 Report, Bureau of the Census, 1970.

23 Report, Department of Health, Education, and Welfare, Office of Education, 23
OE 10030-68 (1970, Series II, pp. 383-94). Background
/ of Today’s
24 Commissioner of Patents, Annual Report, 1970. Department of Commerce, U.S. Advertising
Patent Office, Washington, D.C.
25 Gordon Ryan, vice-president. General Mills, Inc., in Progressive Grocer, May
1971, p. 191.
26 Scientists of National Aeronautics and Space Administration, Sponsor Magazine,
March 1, 1965, p. 30.
27 Samuel Eliot Morison, The Oxford History of the American People, p. 892.
2
Economic and Social
Aspects
of Advertising

Now let’s take up some questions about advertising that are asked by
economists, sociologists, and consumers. And you yourself may have won¬
dered about many of these questions.

The Creative Impact of the Competitive System

In the United States, we operate basically within the system of private com¬
petitive enterprise. Advertising is a part of that system.
This system gives a man a wide opportunity to make products that he
thinks others will buy, and provides the consumer a wide choice of products
from which to choose. If a man undertakes the risk of creating and launching
a new product, he will, if he is prudent, make sure the article works, will
gauge the need for it, and will only then launch it on the market. Such men
are the product leaders, who start things with their inventiveness and resource¬
fulness. Others will be watching the sales of his product, and if it seems to be
"taking,” the following may be expected to happen: (1) Followers will come
out with an imitation of the product cheaper in price and probably lower in
quality, for quick sale through mass merchandisers. (2) As the sales of the
product continue to rise, he may expect competition from substantial manu¬
facturers who will seek to improve on his product, and who have the resources
to do so. (3) He will continue his own development work to better his own
product, and to overtake the improvements offered by others. The battle of
improvements, or differentials, is on.
The question now arises: At which point, if at all, should the origina¬
tor stop trying to improve his product? Would you also try to stop competition
from doing so, provided patents do not already stop them? If for some reason
the leader in the field fails to keep up with competitive improvements, he is

24
headed for trouble. In the drug trade, for example, McKie points out that 25
Economic
"the period of dominance of one product is short—four or five years at most— and Social
and a firm which fails to bring out improvements or new substitutes will find Aspects of
Advertising
its share of the market rapidly passing to others." 1
However, among the many questions and views about advertising that
this process generates are those we consider here.

The Big Swapping Game

As long ago as 1927, Stuart Chase said, "Advertising transfers purchasing

power from A to B. It makes people buy Moggs soap and stop buying Boggs
Soap.” 2 According to this view, advertising is a big game of swapping cus¬
tomers, at the consumer’s expense.
Forty-five years later, Kotler reported that "consumerism will lead to
legislation that limits promotional expenditures which primarily affect market
shares rather than aggregate markets” 3 . . . all with a view to saving the
consumer the cost of such advertising.
Both the foregoing observations are based on the assumption that
markets are composed of a fixed body of people who will buy a fixed quantity
of goods within a given period of time. Yet how can you think in terms of
fixed markets in a country whose population grew from 151 million in 1950
to over 204 million in 1970, with an estimate of at least 245 million by 1985?
How can you speak of limited markets when one third of the increase in
population by 1985 will be in the 25- to 34-year age group, providing a vast
new market of young marrieds? 4 How could you reach this market if not by
advertising?
Since a market is constantly changing in both composition and num¬
ber, the potential market for a product is constantly subject to change, espe¬
cially since the people in it may also change their life-style and their tastes.
Coffee is widely considered a staple on the American scene, but in the
past sixteen years, the per capita consumption has been dwindling, especially
among the under-30 generation, which has gone in heavily for cold soft
drinks—with that market expanding.5 The Department of Agriculture ex¬
pects per capita citrus consumption to be 20 to 25 percent higher in 1980 than

1 James W. McKie, Administrated Prices, Hearings before the Senate Subcom¬

mittee on Advertising and Monopoly, cited by Jules Backman in Advertising and Com¬
petition (New York: New York University Press, 1967), p. 63.
2 Stuart Chase, The Tragedy of Waste (New York: The Macmillan Company, 1927),
p. 35.
3 Philip Kotler, "What Consumerism Means to Markets,’’ Harvard Business Review,
May-June 1972, p. 45.
4 See p. 121.
6 Report of Pan-American Coffee Bureau, 1971
 26 it was in 1969, while milk consumption, which has been declining sharply
The Place
over the past few decades, is expected to drop 15 to 20 percent in that period.
°f
Advertising Per capita consumption of poultry has been going up, while per capita con¬
sumption of dairy products has gone down. Processed fruits and vegetables
have increased in per capita consumption, while fresh fruits and vegetables
have been going down. These changes in the per capita use are compounded
by the changes in the size of the population itself.6
The public changes its taste in many other fields as well. Stainless steel
has replaced table silver in many households. Knitted fabrics are attracting
much of the market formerly given to woven goods. Synthetics have done the
same to all natural fibers—wool, cotton, linen, silk. Even these historic old
industries had no "fixed markets.’’
Now, how about a product of derived demand—tires, for example,
which basically depend for their sale on the number of cars on the road? The
advertising is aimed for the replacement business; it does so by offering a
better price or better tire or both. This is not the same as swapping customers,
but is a competition to attract customers in an expanding market of more auto¬
mobiles on the road each year, by virtue of better tire value.

The "Trivial Differential"

The constant effort to make a product more desirable than its competitor’s by
offering some product improvement is often criticized as wasting money in
advertising "trivial differentials.’’
Those who evaluate the worth of advertising competitive products by
the measure of differences between them are looking at a still photograph of a
living process; they compare the size of plants standing in a row of flowerpots
and say they are all about the same size. They fail to compare the growth in
value of all products in a field today with the values of the same products
some years ago. The continuous succession of improvements that may have
appeared trivial when they came out may have led to the big improvements in
the whole class of products that the buyer takes for granted today.
The General Foods coffee story provides an interesting study in this
connection. Many years ago, ground roast coffee was sold to consumers in
paper sacks, then cardboard boxes, then cylindrical fiber cans, then unbreakable
metal cans with screw lids. Finally came the vacuum can, which provided real
protection and indefinite shelf life. In recent years, General Foods developed
a special blend and roast of coffee for brewing in electric percolators, in re¬
sponse to the growing number of homemakers who "live electrically.”
From this kind of effort to make even minor improvements, new

6 "A View of Food and Agriculture in 1980,” in Agricultural Economics Research,

Vol. 22, No. 3 (July 1970), 61-68, published by the Department of Agriculture.
 Holds twice as much as a 20 year old
refrigerator but costs $88°° less today
TODAY

*
Manufacturer’s Suggested Retail Price

8.7.. . CAPACITY (cu. ft.).20.8

52.. . FREEZER (lbs.).243 (4V2 times as big)
Fresh Food only... DEFROSTING...100% frost free
NO.. SHELVES (adjustable)... YES
NO... WHEELS...YES
NO... COLOR AVAILABLE ..YES
Not Available AUTOMATIC ICE.Optional
Product improvements (at any cost) (at extra cost)
as revealed in a GE ad.

products may also emerge. General Foods now offers the Max-Pax, pre¬
measured coffee packed in disposable filter rings. The company also reported
that 20 percent of the total net sales for 1971 were for products that had been
developed in the past ten years, all because of the search for improvements.7
Procter & Gamble told of its continuing program of product improve¬
ments in this advertisement addressed to the grocery trade:

We keep on checking, testing and questioning our best sellers, even

after they’re on your shelves . . . looking for ways to improve their
performance.

7 Direct communication, General Foods Corporation.

27
 Air Conditioner 1952

This Frigidaire model sold for $320 in 1952. Capacity

was 5,100-5,500 BTUs. Manual control. Net weight
178 lbs.

From Appliance magazine, July 1967.

Downy, for instance, has been improved six times in ten years . . .
to add brightening and freshening, among other things. (And you
know what this did to your fabric softener business.)
We constantly look for ways to improve packaging. Like the moisture-
preventive wrapping and easy-pull tape we pioneered with Cascade.
Or we’ll incorporate other new wrinkles your customers tell us they
want. Like offering a choice of flavors with Crest.8

Dan Gerber came from a family that for three generations had been
in the canning business in Fremont, Michigan. His first formula for baby
food was a porridge prescribed by the doctor for his new baby, while his wife
was in the hospital. When he had mastered making the baby food in quantity
to sell to other parents, the chief question raised by the family was "whether
there were enough babies in the world to consume enough baby food to pay a
canning company to go into baby foods commercially?" . . . The rise of the
baby-food industry, with many firms in it, is now history.
Today, Gerber Products Company offers over 160 varieties of strained
and junior foods, meats, cereals, juices, and related items. "An unseen, but no
less important value," they report, "is the incorporation by Gerber of all the
latest findings in infant health and nutrition and latest food processing
methods." Approximately 25 percent of their sales for 1972 came from
products introduced in the last ten years.9
The Goodyear Tire & Rubber Company offers this report:

Undoubtedly the biggest single factor contributing to improved tire

performance and consumer value since 1965 has been the introduction

8 Supermarketing, May 1972, p. 10.

9 Direct communication, Gerber Products Company.

28
 Air Conditioner 15 Years Later

This model sold for about $174. Cooling

capacity of 6,000 BTUs. Two fan speeds and
thermostatic operation. Weight: 190 lbs. A
screwdriver handles mounting. Who can say
that any of the steps that led to these im¬
provements were "inconsequential”?

From Appliance magazine, July 1967.

of Polyglas bias-belted tires with fiberglass belts by Goodyear in 1967.

This new type of construction combined with improved materials
has provided the consumer with tires which give better road hazard
resistance, improved handling, traction and as much as 50% increase
in tread life mileage—all at a lower cost per mile than previous con¬
ventional tires.
Still further advances have been made with the Goodyear introduction
of Polysteel bias-belted tires with steel belts in 1971. These tires pro¬
vide additional improvements in mileage and road hazard resistance.10

What producers seek, in order to create a differential in value for

their products, is not merely "something different" but "something better."
In each instance, any improvement by one producer in a field soon becomes a
standard offering to the public by all producers in the field. The differences
in competing products may seem little enough at any one moment, but they
serve to bring about major improvements in the entire product class.
When all competitive products in a field are "about the same," as
often they are said to be, that fact may also mean that in choosing any one of
them at random, the consumer is assured of a better product than he would
have been able to get if that trade rivalry for a product advantage had not taken
place.

The "Imaginary Differential”

Some writers draw a distinction between a "real difference" in a product and

an "imaginary" or "fanciful” one. By real differences they mean those values

10 Direct communication, Goodyear Tire & Rubber Company.

29
 30 that are. tangible and utilitarian, and provide a rational basis for judgment;
The Place afe proc[UC|-s 0f ''good utility.” All others enter the "bad utility" realm
Advertising of .fanciful and imaginary claims, by their standards, and do not provide the
basis for making rational comparisons and decisions.
A product is a want-satisfying device. Consumers buy products for
many reasons, including whatever emotional satisfaction they may offer.
Such reasons can be more important to a person than the composition or con¬
struction of the product. A woman will buy a particular foundation cream,
not because of its chemical formula or price, but because the last time she used
it she got many compliments. A man may buy a car without looking under
the hood, and if he does look, he may not even know what he is looking at;
but he does know that this is the year’s "hot" car, and he buys it to enhance
his own prestige and life-style.
"Vanity of vanities, all is vanity,” said the preacher in Ecclesiastes;
there are those who might regard all differences in products other than func¬
tional and utilitarian as vanity and fictitious, but that is a value judgment of
an individual, not an objective standard of judgment. As Moran said, "A

How Small Improvements

Lead to Big Benefits

The Eureka vacuum cleaner of 1952 (on the

left) weighed lAVi lbs., had a three-quarter
hp motor. Price: $69.95. The recent model
(below) has a low silhouette, weighs 12 lbs.,
and has a IV2 hp motor. It also has a retract¬
ing cord, hose storage right within the
cleaner, extra bag storage inside unit, whistle
signal when the dust bag is full, and con¬
struction of nonmarring materials. Price:
$69.95.

From Appliance magazine, July 1967.

great presumption of some economists is that they can differentiate between 31
Economic
good’ and 'bad’ utility. The untenable notion that goods or services can be and Social
Aspects of
classified as 'utilitarian’ and non-utilitarian’ presumes a universal, invariant
Werbung
value system. Such a set of uniform values certainly does not exist in our
heterogeneous culture and never likely did exist anywhere outside of theology.11

Isn’t a lot of advertising false and misleading?

Advertising is too effective a technique to have escaped being used

unscrupulously against the consumer.
The federal government has done much to curb false advertising.
Many states likewise have bureaus of protection against consumer frauds, one
of whose special targets is deceptive-bait advertising. Media also exercise
considerable control over the advertising they accept. In 1905, the organized
forces of advertising created the first vigilante committee to guard against
dishonest advertising-—giving birth to what is now the Better Business Bureau.
In 1971, the National Advertising Review Council was formed—an industry¬
wide organization to curb misleading advertising, showing that the problem
is a persistent one. The fact remains that by far the greatest amount of adver¬
tising must have made good on its representations; otherwise the public long
ago would have learned to ignore it, making it unprofitable to use, and causing
its use to dwindle. This has not been the case.
In addition to his own morality, there are functional reasons why an
advertiser who hopes to stay in business seeks to deserve the buyer s con¬
fidence. First of all, advertising depends on the degree to which it is believed
and accepted. Second, most consumer advertising is for repeat items. Such
advertisers could not afford to persuade a buyer to try the product once, if
there were not a reasonable hope that he would buy it over and over again,
and he certainly won’t if he feels deceived, dhird, in the case of costly con¬
sumer durable goods (refrigerators, washing machines), the more a person
has to spend for such products, the more he will rely upon the reputation of
the makers, and ask around for the experience of others with the products of
that firm. Hence, the maker has every practical pressure upon him to say and
do those things that create satisfied customers.
There is much criticism of advertising for its exaggerations. The
public appears sophisticated enough to discount the advertiser s exaggerated
enthusiasm for his own product, however, even as it discounts the exaggera¬
tions of everyday speech, such as, "My feet are killing me, or, You could
have knocked me down with a feather.” In this connection, the 4A Study on
Consumer Judgment of Advertising reports:
11 William T. Moran, ’’Marketing-Production Interaction,” in Martin Kenneth
Starr, ed., Production Management Systems and Synthesis, 2nd ed. (Englewood Cliffs, N.J.:
Prentice-Hall, Inc., 1971), Sec. 1, p. 4.
 32 What "defenses,” if any, do consumers have against the expert blan¬
The Place
dishments of advertising? In the judgment of the research team, the
. .°f myth of the defenseless consumer can he laid to rest.
Werbung
In addition to having built-in resistance to being sold by advertising
or in person, he views sales messages through a filter of doubt, prior
experience—and not a little boredom and disinterest. He "protects”
himself from the blind acceptance of advertising as he does from other
promises and panaceas he is proffered.12

Drug advertising has always been a special problem. The Food and
Drug Administration is alert to drugs that are unsafe for general use, and can
stop their sale without prescription. It can publish its report of the effective¬
ness of other drug products, and can curb the advertising that makes claims
that are not consistent with these findings or cannot otherwise be substanti¬
ated. There is much activity on drug advertising.
In the fiscal year 1970, the Federal Trade Commission examined for
misrepresentation approximately 238,000 pages of newspaper and magazine
advertisements and television scripts—the most extensive examination of ad¬
vertising yet made. Of these, 13,500 were referred for legal review.13 Thus,
only about 6 percent of all advertising had even some doubt about it. Even
that number is far too many, but it is far less than is the impression some may
have about the prevalence of misleading advertising.

Isn’t advertising a "costly armament race”?

It has been held that "as in an armament race, the more one company
spends [in advertising], the more others feel impelled to spend.” As in an
armament race, such expenditures are said to neutralize each other, all at a
cost that "society has to bear.”
Whenever one speaks of the "neutralizing” effect of matching adver¬
tising dollars by competing members of an industry, one must also keep in
mind that the competition among producers is being carried right into all
aspects of the business, including research and development efforts, which
may lead to new and better products. Seldom is a voice raised against the
neutralizing” effect of such research expenditures. Then would it not ap¬
pear reasonable that telling people about the fruits of the research is an
equally useful economic function? That is the role of advertising.

Doesn’t the consumer have to pay for the advertising?

Yes, because whoever buys a product pays for all the costs inherent
in its making, selling, financing, and delivery; he pays for the raw materials,

12 Study on Consumer Judgment of Advertising (New York: American Association

of Advertising Agencies, Inc., 1965).
13 Communication from the Federal Trade Commission.
the wages, the taxes, and the research activities; he also pays for the salesmen 33
Economic
and for the advertising. (If the cost of all these weren t covered by the final and Social
price that the consumer pays, where would the money come from?) The cost Aspects of
Werbung
of advertising invites questioning more than do the costs of many other
activities of business, because advertising by its very nature calls attention to
itself. But to say that the consumer pays for advertising does not necessarily
mean that he is paying more because of the advertising. Whether the con¬
sumer pays more or less, in a particular case, depends on:

1. The effect of advertising on the production costs of a product

2. The effect of advertising on the selling costs

3. The effect of the value goals of the business

The effect of advertising on production costs. Where the costs of

making a product are reduced by large-scale production, and where advertising
has helped produce the volume of sales needed to effect the savings of mass
production, it is legitimate to say that advertising has helped make possible
the reduction in the cost of producing those goods.

Does mass production always reduce production costs?

No. A point may be reached in mass production at which the unit costs
remain constant. In fact, costs may even go up as an operation becomes bigger,
because of less-efficient workmen or looser management control. The job of
advertising, however, is to help create the volume of orders needed to pro¬
duce the optimum level of production for a given capacity, serving to reduce
the unit cost of each product. Whether that reduction in cost is passed on to
the buyer, and in what form, depends upon the value goals of management,
which we will come to shortly.

The effect of advertising on selling costs. Although we speak of

"advertisers,” the advertisers do not speak of themselves that way except at
advertising conventions. They refer to themselves as being in the food busi¬
ness, or being in electronics, or as being drug manufacturers, as the case may
be. Their concern is to sell as much of their product as they can at the lowest
selling expense. Their goal is profit. To them, advertising is just one of the
alternate methods of marketing a product. A reason so many manufacturers of
consumer products use advertising is that they have found that:

advertising is the way

to tell many people about a product
in the fastest time
at the lowest cost
per message.
 34 If producers found a less costly way to market their product, they would, use it.
The Place
0f
Advertising Does this necessarily mean that advertising always reduces the cost of a
product to the consumer?

Here again, the answer is no. The price at which a product is sold is a
decision of management, which depends on its value goals.

The effect of the value goals of the business. The value goal of a
business represents the value it plans to offer in the product and the form that
value is to take. It is the reason for the product’s existence. The value goal
may be to produce a dependable product at the lowest possible price, as in the
case of Timex watches, which begin at $7.95. Here the whole business was
dedicated to that low-price goal—the mechanism of the works, its design, the
choice of materials, the planning of production without changes in fashions
to assure the best production-line economy—all with the one goal in mind of
producing the lowest-cost dependable watch. But it took advertising to create
the sales to amortize the cost of the special machinery needed, and to get the
volume of business necessary to keep that production line busy at its cost-saving
level. In this event it is legitimate to say that advertising helped reduce the cost
of the product to the consumer.
Or the value goal of the business may be to offer the most luxurious
product in its field regardless of cost, like the Piaget watch, which at $1,690
is advertised as the most expensive watch in the world.’’ Here everything will
be planned with one goal in mind—to make it the finest watch possible, re¬
gardless of cost. The purpose of the advertising is to make people appreciate
why the watch is worth the money. Certainly, in such a case, advertising is not
an instrument for reducing cost. The same applies to the luxury or premium
end of most product lines—for example, Chivas Regal Scotch Whisky, a most
expensive brand.
Because of the differences in the value goals of different enterprises,
it is not possible to make a single sweeping statement about the effect of ad¬
vertising on the cost of a product to the consumer. The fact does remain that
for most products designed for widespread consumer use, the value goal of
management is to produce a better product at a lower cost to the consumer.
For example, in 1924 the first box of Kleenex tissues, of approximately 200
9-by-10-inch sheets, cost 63ft. In 1972, a box of 200 tissues, 8.5 by 9.33 inches,
greatly improved in texture and strength, and with distinctive packaging and
decorator colors and prints, cost about 32p (in 1972 dollars).14
In 1954, Proctor-Silex steam iron with a cumbersome detachable
reservoir retailed for around $18.95. In 1972, their steam-and-dry iron, more
compact, with an internal tank, was generally available at $7.99. In 1954, the
lowest-price Proctor-Silex two-slice toaster carried a regular retail price of

14 Direct communication from the Kimberly-Clark Corporation.

$15.95. In 1972, a greatly improved model with modular parts that could ^conom-lc
easily be removed for cleaning and replacement was generally available at and Social
$7 99 15 Advertising in the United States is a part of the competitive free- Aspects of
^ 6 77 7 , Advertising
enterprise system that makes better products and tower prices possible.

Isn’t the fact that the manufacturers’ nationally advertised brands cost
more than the distributors’ brands good evidence of how much advertising
costs the consumer?

A shopper is offered an unfamiliar brand of a product at less cost

than a well-known advertised brand. "It’s just the same, says the clerk, and
it costs less because you don’t have to pay for the advertising.’’ True or false?
When you mention "advertised brands’’ to a housewife, she usually
thinks of the well-known brands extensively advertised by the maker. She then
lumps all other products as being "not advertised. This calls for some
definitions:
Nationally advertised brands. Those owned and advertised by the
producer, usually on sale through many outlets.
Nationally advertised private brands. Those brands owned ^nd
controlled by the distributor and sold through his own outlets only. The out¬
standing example is Sears, one of the largest of all advertisers. Most of their
advertising is done through their many local stores. However, they do some
advertising in national magazines. Hence they are a national advertiser of
private brands. The prices of their offerings, if lower, are not so because their
products are not advertised, but because of their method of doing business.
Locally advertised private brands. These are owned by chains or
department stores, or by independent outlets—with the merchandise confined
to their respective outlets. They too are very large advertisers. Hence, here
also, whatever lower prices they offer are not because "they don t advertise,
but because of their operational patterns.
Private brands owned by wholesalers. Drug and hardware, grocery
and liquor wholesalers, will often put up and sell their products under their
ownTabel7 to’local retailers. These are seldom advertised except locally in a
price ad.
When a clerk says a product is "just the same,” the shopper may well
ask "How do you know?” If, as in the case of the largest stores and chains,
there is adequate quality control for all the products they buy, there may be
some basis for the statement. Some of the largest retailers even own and oper¬
ate their own production facilities. But many retailers have no such facility.
They can never be sure that the product is uniform in quality. When a clerk
says that a private brand is made by the same manufacturer as the advertised
braad, even when true—and that is always a question—there is no assurance

15 Direct communication from the Proctor-Silex Corporation.

 36 that the product is made to the same specifications as the nationally advertised
The Place
brand. But most consumers rely on the consistent quality of the nationally
of
Advertising advertised brand for a majority of the everyday products they buy.
The more a man has invested in advertising his trademarked product,
the more he will protect this asset by guarding its quality. The public knows
merely that on the whole it is better satisfied buying a product with a reputa¬
tion behind it than it is in buying one that does not have such a reputation.
With each purchase, therefore, a buyer has his choice of risks, not merely of
products. It is not accurate to say that two products are just the same to the
buyer, if they differ in the insurance of satisfaction they offer at the time of
purchase.
If national advertisers had not created and launched new types of
products and improved them constantly, the private labeled brands might not
even exist. Private brands, however, constantly remind the owners of national
brands that it isn’t enough to keep in line with each other’s prices, for as the
prices of nationally advertised goods go up, the number of private brands at
lower prices increases. Private-label brands serve as a countervailing force, to
use Galbraith’s term, to the price of nationally advertised brands.

Doesn’t advertising foster monopolies?

Advertising is held to breed monopolies, restricting open competition

in a field. The focal point of the monopoly power of a national advertiser is
held to be his trademark. The minute a man plucks his product from ano¬
nymity by affixing his trademark, he acquires the exclusive rights over it; if
people want his product, they must come to him for it.
The reputation attached to a trademark does not necessarily involve
advertising, although advertising can be important. For example, Wedgwood
chinaware became world-famed without the benefit of advertising. If a woman
has her heart set on a piece of Wedgwood china, she must pay a price based
on what the owners of the Wedgwood "monopoly" ask when they sell it to a
store. The holders of the Wedgwood "monopoly" have no monopoly on her
heart, however; she may decide to buy Spode china, or American Castleton
china, or for that matter, use her old china and buy draperies instead. Or she
can forget the whole thing and save the money.
To do away with monopolies with their "useless differentiation,"
Chamberlin proposed that:

... the exclusive use of a trademark might be granted for a limited

period, under the same principle as that of the patent laws, say for
five years, after which anyone could make the identical product, and
call it by the same name. The wastes of advertising about which
economists have so often complained would be reduced, for no one
 could afford to build up goodwill by this means only to see it vanish 37
Economic
through the unimpeded entrance of competitors.10 and Social
Aspects of
Werbung
That there would be less advertising is quite true. It is a question, of course,
whether a man would be willing to risk his capital and effort in developing
new and better products if he knew in advance that he had only a few years
in which to recover his costs and to profit by his risk.
Among others who view advertising as monopolistic, making it diffi¬
cult for someone to enter a field, is the Federal Trade Commission, as de¬
scribed by Backman:

Ease of entry into a market long has been regarded as one of the key
indicia of a competitive market structure. The courts have given this
factor considerable emphasis in judging the legality of mergers.
Heavy advertising expenditures have been viewed by some critics as
creating barriers to entry because present producers develop such
goodwill for their products that newcomers must spend large sums
on advertising to compete effectively. Thus, it allegedly limits entry
in two ways! (1) The volume of resources required to compete is
very great; this limits the entry of small firms into the market; and
(2) it is difficult to overcome existing brand loyalties; this acts as a
deterrent to larger firms.17

The large national advertiser has many things going for him besides
his volume of advertising. He has had ample opportunity to perfect his
product; he has established dependable resources for buying his raw materials;
he has an experienced organization, used to working together; he has the
benefit of years of effort in getting distribution, and probably enjoys excellent
shelf position in many stores; he has the finances to make needed capital ex¬
pansion. His products are already widely known and used by many. All these
assets he has earned over the years. However, he also gets better advertising
rates than does the smaller advertiser, because of his quantity discounts. (This
has been a sore point with the Federal Trade Commission.)
None of the foregoing advantages would keep out of the field another
experienced competitor if he had a superior product that he thought could
overcome the other’s head start. Example: For generations, Colgate s was the
leading toothpaste. Procter & Gamble came along with Crest, with stannous
fluoride (Fluoristan), were the first to get the approval of the Council on
Dental Therapeutics, American Dental Association, and are now the leaders
in the field.

16 Edward Chamberlin, The Theory of Monopolistic Competition, 6th ed. (Cam¬

bridge, Mass.: Harvard University Press, 1950), p. 274.
17 Jules Backman, Advertising and Competition (New York: New York University
Press, 1967), p. 40.
 38 The greatest competition facing national advertisers who sell through
0j stores is the price competition of the private brands owned or controlled by
Advertising the very distributors on whom the advertiser depends for his shelf display and
business.
America is not one market; it is many. The big advertiser may be top
dog in some markets, but just one of the pack in others. Even though an ad¬
vertiser may do extensive national advertising, there will be many markets
—especially in the food field—where some local or regional producer will
have the most popular product. In time, the popularity of that product may
spread, and lo and behold, the advertiser may become a national competitor
and a national advertiser. That s the story of the Oscar Mayer meat business,
which began locally and today does annually over a half billion dollars in
business nationally. There was no barrier to entry here.
New small advertisers have also successfully competed with the giants
in their field, not by trying to match advertising dollars, which they do not
have, but through ingenuity in their product design, by good timing, and by
imaginative advertising, or by all three. The entry of a foreign car—and a
compact, no less—the Volkswagen, into a country that prided itself on its
automotive industry, is a good example of how a small advertiser shook an
entire industry. And in the face of the mammoth General Electric Company
and Westinghouse Electric Company, which dominated the household-
appliance field at the time, a small manufacturer in Philadelphia, now known
as the Proctor-Silex Corporation, came out with the first practical toaster
thermostat that would make the toast pop out when it was ready, and the first
electric iron with a practical adjustable thermostat control. That company now
does an estimated 40 percent of the total toaster business and 25 percent of
the total electric-iron business in the United States.
Galbraith, however, points out:

... in an established industry, where the scale of production is con¬

siderable, there is no such thing as freedom of entry: On the contrary,
time and circumstances bar the effective entry of new firms. ... In
fact the present generation of Americans, if it survives, will buy its
steel, copper, brass, automobiles, cigarettes, whisky, cash registers, and
caskets from one or another handful of firms that now supply these
staples. As a moment’s reflection will establish, there hasn’t been
much change in the firms supplying these products for several
decades.18

18 John Kenneth Galbraith, American Capitalism (Boston: Houghton Mifflin Com¬

pany, 1962), pp. 38-39.
Doesn’t advertising confuse people by giving them a bewildering choice 39
Economic
of items and claims? and Social
Aspects of
Werbung
This is the reverse of the argument that advertising creates monopo¬
lies. The United States, with its industrial capacity, produces each day
thousands of different products with their own variations in models, colors,
styles, and sizes, to meet the varied needs and tastes of a widespread popula¬
tion. The number of different products in a field depends not upon advertis¬
ing, but upon the nature of the business; you hear few women complain
about the number of dresses on a department-store rack, but only a small
proportion of these are nationally advertised brands.
In many villages 'throughout the world, Thursday is the market day,
when all who have something to sell come from far distances and spread
their wares on the ground of the village square, and all who wish to buy come
from far distances to look over these offerings. In our society, manufacturers
present their wares through advertising, so that the shopper can learn about
the different offerings right at home.
The effort by a consumer of deciding which product among many to
select is the price one has to pay for the privilege of being able to make a
selection.

Isn’t advertising making us a nation of conformists?

According to modern anthropology, all societies impose on their

members the desire to conform; and they punish deviates from cultural norms
in various ways. (In our society, we call them odd and avoid them.) Wfien
the majority of the society is subjected to the same influence much of the time,
the tendency to conform becomes more pronounced.
Advertising is only one of the many forces in American life that tend
to encourage conformity. It is one aspect of the impact of mass media in gen¬
eral—television, radio, magazines, newspapers, movies which spread ideas
and styles simultaneously to millions of people. Other institutions in our
society have that effect, too—for instance, schools, and the urbanization of
American life with its look-alike housing.
The very idiom "mass production’’ implies a huge output of identical
goods.
Advertising, however, thrives on the diversity of its goods; it extols
differentiations. The advertisements in a single issue of a national magazine
featured the following varieties of the respective products advertised, as re¬
vealed in their headlines:
 40 Ford 17 Fords to choose from
The Place
Coty 42 beautiful colors
.
Werbung
Chevrolet Choose from 15 Chevrolets in four beautiful series
du Pont This fall—more styles, more colors with Dacron
Jarman Shoes See our wide selection of shoes for every occasion

Within one year, Detroit car makers offered 323 different models.
With the possible variations of trim, color, and options, the industry is re¬
portedly able to run its assembly line for a year without producing two identi¬
cal cars.
This variety within a product does not take into consideration the
great variety among the products advertised, serving to encourage people to
express their own individuality.

Doesn’t advertising make people want things they can’t afford?

No doubt it does in many ways. If it spurs a man to work harder to

earn the money to buy those things, that is a good effect. Advertising seeks
to show people what else is going on in the world; it seeks to point ways to
health, wealth, and happiness.” Books do this. A TV travel program may do
this. Newspapers and magazines do this. The schools do this. A visit with a
friend may do it. All these influences may serve to make us restless in our
desire to attain what we may consider a better standard of living. Under our
system of government, every man has the responsibility of deciding for him¬
self how he wants to spend what remains of his money after taxes, what
things are necessary or important to him, and what he wants to work for.
Would it be right to withhold information about products from those who can
afford them, in an effort to avoid arousing those who might not be able to
afford them today? Or who might have more important priorities for the use
of their money?
A great service is performed by the man who shows people how they
can live better, enjoy better things in life, get better satisfaction by improving
their way of living. This is not the exclusive province of advertising. But
advertising not only tells about these things; it is forever telling how they
may be attained more easily, more quickly, and at less cost—the favorite words
of advertising headlines.
The selfsame advertising that encourages people to want things they
can t afford at the moment helps make the luxuries of today become available
tomorrow at a price people can afford. The exposure to such ideas does not
exempt a man from having a philosophy of life about what values are most
important to him and to his family.
This question is often linked to the one asking, "Doesn’t advertising
make people buy things they do not need?’’ The basic needs of man are for
food, clothing, and shelter. Even primitive man had his ideas of what his 41
Economic
needs were, and sought to improve himself on these counts; the caves of and Social
primitive man still show the paintings on the walls. All "needs” above the Aspects of
Werbung
subsistence level are acquired tastes, which today we call the standard of
living, and each man sets that for himself as best he can.
Often, one man will pass judgment on another for buying things he
does not "need” within his apparent income level. But how would that man
passing judgment react if he were told someone had said the same about him?
If a man buys something that he later decides he does not need, that experi¬
ence is a reflection on his judgment, and not on advertising.

What about advertising and imperfect competition?

Among the broad categories economists use to describe the various

forms of competition in their study of pricing systems are perfect competition
and imperfect competition. Advertising is often discussed in relation to these.
Perfect competition exists when a product is exactly like all other
products in its class, in a field where there are many small sellers—such as
wKeat, cotton, corn. Here, a man’s product is indistinguishable from the others
in its class. The price he gets for his crop is the one determined by an auction
of all products like his on that day. There is no way or reason for him to ad¬
vertise his own output to get a better price for it.
Imperfect competition exists when a number of producers make the
same type of product, but each is distinguished in some way from the others.
It may have a trademark, which automatically gives it a differential. It may
also differ in design, construction, formula, quality of ingredients, or work¬
manship, or in some other respect vary from others in that field. We are now
speaking of products such as electric razors, television sets, refrigerators, cos¬
metics, and the host of packaged goods on the supermarket shelf. The owner
of the differentiated product can control the price at which he offers it; he has
every inducement to advertise it. Most advertising is devoted to products sold
under imperfect competition.
Writers of economic texts clearly point out that the terms perfect
competition and imperfect competition are used in a special sense in discussing
certain theories of price behavior. But often, writers on the subject use the
terms loosely, referring to advertising as one of "the imperfections of com¬
petition,” or as an "impediment to perfect competition,” making advertising
appear as an economic villain. They also overlook that price is only one part
of the equation representing value (the other being the quality of the product),
as revealed in the statement, "It [advertising] takes the eye off price, putting
it on some alleged product differential.” 19 The real charge here seems to be

19 George W. Stocking and Myron W. Watkins, Monopoly and Free Enterprise

(New York: Twentieth Century Fund, 1950), p. 11.
 42 that product differentials and the advertising of them interfere with the work¬
The Place
ings of a theory. The regret is in the lack of development of a theory and
°f
Advertising terminology that meet the real-life situation.

What does the public and business think about advertising?

Just about everyone has something to say about advertising, usually

based on experiences with the ads he or she sees and hears every day. Seldom,
though, had any systematic effort been made to find out the attitudes of the
public as a whole toward advertising, or toward its specific economic and
social impacts. It was for this reason that a massive and comprehensive sur-
vey, planned and supervised by an impartial academic review committee of
Harvard and M.I.T. professors, was undertaken in the mid-1960’s. Although
the research was supported financially by the American Association of Adver¬
tising Agencies, the content and conduct of the study, and the analysis and
interpretation of the data, were totally in the hands of the committee.
The large-scale study was conducted, with a nationally projectable
sample, throughout the United States. Over 60,000 ads were involved, and
9,000 were examined in lengthy in-home interviews by the researchers. Among
its goals were:

1. To gather the public’s attitudes toward advertising overall and to

its particular economic, social, and aesthetic aspects
2. To find out how consumers react to advertisements themselves
3. To learn why consumers react to ads the way they do

Many of the same attitude questions were also asked of over 2,500 executives
from all types and sizes of business in separate studies conducted by the
Harvard Business Revietv.20 Thus we can examine the views of both the
public and the business community on the same issues.
These studies of public and business opinion reveal an interesting
combination of attitudes—on the whole, very favorable to advertising in terms
of its economic functions, but critical of its social impacts and questioning
with regard to aspects of its content. What the public seems to be saying is
that they like what advertising does for them, but dislike what advertisements
do to them.

20 The basic study of public attitudes is Raymond A. Bauer and Stephen A. Greyser,
Advertising in America: The Consumer View (Cambridge, Mass.: Harvard Business School
Division of Research, 1968) ; also see the Gallup Organization study of attitudes toward ad¬
vertising conducted for Reader’s Digest (1970). The basic studies of executives’ attitudes are
Stephen A. Greyser, "Businessmen Are Advertising: Yes, But . . . Harvard Business Re¬
view, May—June 1962; and Stephen A. Greyser and Bonnie B. Reece, "Businessmen Look
Hard at Advertising,’’ Harvard Business Review, May—June 1971.
 Let us first look in detail at the attitudes and reactions of the Ameri¬ 43
Economic
can public to ads and advertising. and Social
Aspects of
Advertising
Overall attitudes. Americans’ basic attitudes toward advertising are
generally favorable. Those classified as favorable (41 percent) far outnumber
those whose attitudes are classified as unfavorable (14 percent). A consider¬
able proportion of Americans take a mixed position (34 percent) or are in¬
different (8 percent) toward advertising overall. Surprisingly, this picture
holds relatively constant across the usual demographic groupings: Support
or criticism of advertising on the whole is little related to classifications of
age, sex, income, and education. Strong general support for advertising is also
shown by the 78 percent who agree that advertising is essential; only 18 per¬
cent disagree.

Economic issues. It is in the economic area that advertising receives

its broadest and strongest endorsement from the public. Some 71 percent of
the public agrees that advertising raises our standard of living, and 74 percent
that it results in better products for the public. In the area of advertising’s
impact on prices, opinion is more nearly divided. Some 40 percent say the
effect is lower prices, 43 percent say higher prices, 15 percent can’t say.

Social impacts. It is in the area of advertising’s social impacts and

its impact on the individual that Americans express some reservations about
advertising. For example, a considerable majority (65 percent) believe ad¬
vertising often persuades people to buy things they shouldn’t buy.

Advertising’s ethics and standards. When asked whether they think

advertising presents a true picture of the products advertised, 53 percent of
the public disagrees, while 41 percent agree. Nonetheless, when asked to
compare the standards of today’s advertising with that of ten years ago, 58
percent of the public responds "higher,” and only 10 percent say "lower. It
seems that as the standards of advertising have improved, people expect even
more of it.

Advertising content. When it comes to individual advertisements,

Americans exercise strongly their rights to their individual opinions. The same
ads that annoy and offend some people are cited as enjoyable or informative
by others. Ads that generate a strongly favorable or unfavorable reaction
from some people are ignored by others. In the study of the public’s reactions
to specific advertisements, one principal finding was that people do indeed
"screen out” a considerable proportion of the ads to which they are potentially
exposed. Only a small proportion of ads, among the many to which his media
 44 habits expose him, actually capture the conscious attention of the average
The Place
°f consumer. Further, even among those ads to which the average consumer
Advertising does pay conscious attention, well under half (the percentage varies from 16
to 40 percent) make any special impression upon him. But in this study, only
16 percent of the ads that did so went on to make a particularly favorable or
unfavorable impression.
What were those favorable and unfavorable impressions? First, and
most important, those ads the public considered enjoyable (36 percent) or
informative (36 percent) far outweighed those viewed as annoying (23 per¬
cent) or offensive (5 percent). (Of course, a relatively small proportion of
objectionable ads can be enough to generate concern.)
Not surprisingly, the major reason that people regard certain ads
favorably is that the people think they have learned something from them—
about the product, its price, and so on. The two other principal reasons offered
are that the ad created a personal involvement with the situation or product,
and that the ad accurately portrayed their own experience with the product.
When Americans consider ads annoying, it is more because of the
ads’ direct irritation as unpleasant events than because they fail to give ac¬
curate marketing information or give rise to moral concern. In other words,
it is the intrinsic qualities of the ads, more than their roles as selling instru¬
ments, that predominate in this event. Among the annoying intrinsic qualities
are their intrusiveness, with unpleasant people, voices, music; their silliness,
their exaggeration, their misrepresentation.
What distinguishes the offensive ads from all others is the moral con¬
cern that respondents express about products that they think should not be
advertised (and in some cases, not sold) and advertisements that they think
should not be seen or heard by children.
What about the ads that weren’t in any of these categories? Consumers
reported that such ads just weren’t of interest. Either the product itself had no
interest, or the ad was considered dull or unimaginative. This finding presents
further proof of consumers’ ability to be selective about advertising.
However, people’s reactions to ads are also closely tied to their use
of and preference for the products and brands involved. People react much
more favorably to ads for products they use and for brands they prefer.
On the whole, then, the public shows considerable ability to identify
those aspects of advertising that it likes and dislikes. Advertising’s social and
esthetic dimensions are the ones most criticized, even by those who are gen¬
erally favorable to advertising. On the positive side, in its economic role, and
as a carrier of informative and enjoyable messages, advertising is praised.
Even those who are most generally unfavorable to advertising view very posi¬
tively these economic contributions.
 Businessmen’s views. In most respects, businessmen echo the re¬ 45
Economic
actions of the public. As might be expected, they are somewhat more favorable and Social
to advertising in general. But they demonstrate the same ability as does the Aspects of
Werbung
public, on the same issues, to discriminate between those aspects of advertising
they favor and those they question or criticize. However, between 1962 and
1971, executives grew somewhat more critical of advertising as a whole. A
partial explanation lies in their strong agreement that broader criteria than
traditional business and selling effectiveness alone should be applied to
assessing advertising.
In terms of an overall appraisal of advertising, executives almost
unanimously agree that advertising is essential to business (even if not neces¬
sarily for every individual-firm'). They also agree very strongly (90 percent)
that the public places more confidence in advertised products than in unad¬
vertised ones. On specific economic dimensions, businessmen strongly believe
that advertising makes a distinctive contribution in speeding the development
of markets for new products. They also agree strongly that advertising helps
raise our standard of living and results in better products.
Still in the economic area, although a majority of executives think
too much money is spent on advertising, they acknowledge that large reduc¬
tions in advertising expenditures would decrease sales for business in gen¬
eral as well as for their own companies. Further, if advertising were elimi¬
nated, businessmen claim, selling expenses would have to go up.
Turning to social issues, executives are more critical of advertising.
For example, they agree that advertising has an unhealthy influence on chil¬
dren. They strongly believe that it persuades people to buy things they do
not need, although they split 50-50 as to whether advertising can persuade
people to buy things they do not want. Executives single out elimination of un¬
truthful and misleading ads as the most important form of self-improvement
that advertising should undertake.
The results of this study of businessmen’s image of advertising can
be characterized as "Yes, but. . . .” Although this is a simplification, it still
seems to serve as a convenient summary of both public and business views.
The "but” lies in the realm of advertising’s social impacts, and to some extent
in its content. The strong "yes” is the reaction to advertising’s primary role
as an economic contributor to business and to the public.
 46
The Place
of
Werbung

Kleenex Facial Tissues

A case report on product improvements

Facial tissues is one of the largest consumer product industries in existence

today. Over 300 different brands make up this industry. The primary con¬
tributing factor to the growth of the facial tissue industry has been Kleenex
facial tissue.

History of Kleenex Facial Tissues

First introduced in 1924, Kleenex facial tissues were designed as a substitute

for the "cold cream towel." The first product, a small package consisting of
100 sheets, sold at retail for 65^. Because of the high price, the product had
limited usage. Until 1930, it was estimated that less than 5 percent of the
households in the United States used any facial tissue.
Several years after the product’s introduction, the company started
receiving letters from consumers, stating that they were using Kleenex facial
tissues as a substitute for handkerchiefs, rather than strictly as a cold cream
remover. To determine the extent of the product’s use as a substitute for
handkerchiefs, Kimberly-Clark ran a test in Peoria, Illinois. Results of this
test showed that over 60 percent of the people purchasing Kleenex facial
tissues were using them as handkerchiefs.
The results of this test caused a complete change in advertising and
marketing strategy. The advertising started to stress the use as a handkerchief.
Results of this new campaign were outstanding: In the first year, sales
doubled and continued upward until the depression leveled them out.
In the late ’30s and early ’40s, two other features were developed for
Kleenex facial tissues which set this product apart from its competition.
After considerable testing and manufacturing innovations, the famous pop-up
feature was introduced. It became a "first" and exclusive. Today, over 90
percent of the housewives identify the pop-up feature with Kleenex facial
tissues.
It was also during this period that the quadrant package design was
first introduced. This same design has been retained on today’s packages. In

Courtesy, Kimberly-Clark Company, Inc.

a market research test conducted in 1966, one of the leading research firms in 47
Economic
the United States reported that the Kleenex facial tissues package quadrant and Social
design was one of the most recognizable packages in the United States today. Aspects of
Werbung
It ranked in the top three with the Coke bottle and the Hershey candy bar.
Another new manufacturing innovation was introduced in the late
’50s and early ’60s. This was the Space Saver concept. Prior to this time, manu¬
facturers had been using larger size packages for their product. Kimberly-
Clark reversed this trend. The result of this innovation has meant not only
considerable dollar savings to Kimberly-Clark, but also to the retail trade.
Today, Kleenex facial tissues remains the leader of the facial tissue
industry. It represents over 40 percent of the total retail dollar sales volume
for facial tissue. It has also, retained its leadership as the primary innovator in
the business.

Product Line

Kleenex’ product line innovations have segmented the facial tissue market.
Basically, Kleenex products are divided into three groups. These groups are
specialty products which include Little Travelers, Man Size, and Pocket Pack.
The second group can be classified as commodity or high volume put-ups. This
group includes the 125’s, 200’s and 280’s. The third group is classified as the
decorative segment. This group includes the Boutique deep color and printed
facial tissue.

Review Questions

1. What is meant by the creative im¬ 6. If advertising were not used to

pact of the competitive system and bring products before the public,
how does it relate to advertising? what alternatives would there be?
How would their cost compare ?
2. "Advertising is a big game of swap¬
ping customers at the consumer’s 7. Select any two of the following four
expense." Discuss. common criticisms of advertising
and discuss:
3. "Most advertising is devoted to ad¬
vertising trivial differences between It creates monopolies.
products, hardly worth the ex¬ It confuses people with too many
pense.” Discuss. products.

4. What are your views on "the neu¬ It leads to a nation of conformists.

tralizing effect of most advertising" ? It makes people buy things they
do not need.
5. Explain how advertising can serve
to decrease the cost of a product? 8. What do economists mean when
Under what circumstances can it in¬ they speak of "perfect competition"
crease the cost? and "imperfect competition"?
 48 9. Based on the consumer study cited, 10. As head of a major advertiser, what
The Place how do most consumers regard ad¬ instructions would you issue as to
of vertising? Favorably? Unfavorably?
Werbung
the standards your advertising must
Indifferently? By what percent? meet ?
What are the common causes of an¬
noyance about advertising ?

Reading Suggestions

Backman, Jules, Advertising and Com¬ Greyser, Stephen A., "Advertising: At¬
petition. New York: New York Uni¬ tacks and Counters," Harvard Busi¬
versity Press, 1967. Excerpted in ness Review, March-April, 1972, pp.
Kleppner and Settel, Exploring Ad¬ 22—28ff.
vertising, p. 33. Greyser, Stephen, and Bonnie B. Reece,
Bauer, Raymond A., and Stephen A. "Businessmen Look Hard at Adver¬
Greyser, Advertising in America: The tising," Harvard Business Review,
Consumer View. Boston: Harvard May-June 1971, pp. 18-26.
University, 1968. Howard, John A., and Spencer F. Tink-
Becker, Boris W., "The Image of Ad¬ ham, "A Framework for Understand¬
vertising Truth: Is Being Truthful ing Social Criticism of Advertising,"
Enough?" journal of Marketing, July journal of Marketing, October 1971,
1970, pp. 67-68. pp. 2-7.
Borden, Neil H., The Economic Effects Levitt, Theodore, "The Morality (?) of
of Advertising. Chicago: Richard D. Advertising," Harvard Business Re-
Irwin, Inc., 1942. vieiv, July-August 1970, pp. 84-92.
Chase, Stuart, The Tragedy of Waste. Marketing Science Institute, Appraising
New York: The MacMillan Company, the Economic and Social Effects of Ad¬
1927. vertising. Cambridge, Mass., 1971.
Doyle, P., "Economic Aspects of Adver¬ Petit, Thomas A., and Alan Zakon, "Ad¬
tising," The Economic journal, Sep¬ vertising and Social Values," journal
tember 1968, pp. 570-602. of Marketing, October, 1962, pp. 15-
Edwards, Corwin D., "Advertising and 17. Also in Kleppner and Settel, Ex¬
Competition," Business Horizons, ploring Advertising, p, 100.
February 1968, pp. 59-76. Simon, Julian L., Issues in the Economics
Galbraith, John K., "The Economic of Advertising. University of Illinois
Theory of Advertising," in Exploring Press, Urbana, Ill., 1970.
Advertising, ed. by Kleppner and Set¬ Trowbridge, Alexander, "Challenges of
tel. Englewood Cliffs, N.J.: Prentice- Advertising," in Exploring Adver¬
Hall, Inc., 1970. tising, ed. by Kleppner and Settel.
Goldman, Marshal L., "Product Differ¬ Englewood Cliffs, N.J.: Prentice-Hall,
entiation and Advertising: Some Les¬ Inc., 1970.
sons from the Soviet Economy,” The
journal of Political Economy, Vol. 68,
No. 4 (August i960).
 3
The Roles
of Advertising

The Value Goal

The chief role of advertising is that of selling goods and services. Ad¬
vertising is only one part of a marketing program, which begins at the incep¬
tion of the product. This is the time when the makers decide upon the goal
of values the product will offer.
The value goal may be to produce the lowest-priced product in its
class—as the Pinto car. Or the value goal may be to produce the finest
product in its class, such as the Lincoln Continental car. It may be to come
out with an altogether new product, like the original Polaroid camera, to
produce an improvement in an existing product, such as the Instamatic
camera by Kodak; to make a new type of biodegradable package; or to pro¬
vide a new style of the product. The goal may be to make a new product
formulation, as with instant iced tea that is presweetened and preflavored
with lemon. In brief, what is the value goal of the makers for the product
they plan to offer, to give their product a place in the sun?
As time goes on, the management may change its set of value goals
to meet changing conditions. The company may offer a special guarantee,
such as American Motors’ offer of the free use of a car while overnight re¬
pairs are being made. Volkswagen first featured its small-size, single Beetle
model and lowest price; it has since come out with more models, larger in size.
With the decision as to what the value goal is to be, all efforts for
production and for marketing the product begin.

The Marketing Mix

In making plans for marketing a product, many elements are involved, in¬
cluding brand policy, pricing, distribution, sales representatives, and adver¬
tising—referred to collectively as the marketing mix} A number of these
elements go into every marketing plan, each affecting the others.

1 A term coined in the 1930’s by Professor Neil H. Borden of the Harvard Busi¬
ness School.

49
 50 An understanding of key factors in the marketing mix may help ex¬
The Place plain why advertising is more important in some industries than in others,
°f
Advertising why it varies in use between members of the same industry, and how the
total marketing mix affects the role of advertising.

Product and brand policy. Here is a new product. Should the

manufacturer have it bear his own trademark? Or should it bear the private
labels of the chain stores, mail-order houses, and other distributors to whom
he sells it? In the latter case, the manufacturer has no advertising problem.
(He may have other problems, but that’s another story.) If the product is made
by a well-known company, should it come out under the company name
(.Kellogg’s cornflakes, Kraft cheese) or just under its own brand name, as in
the case of Procter & Gamble products (Cheer, Dreft, Tide)? If the product
is for a new company, will it be one of a line? If so, that must be anticipated
in the choice of trademark and packaging design. Is it a style product that
calls for continuous change, or will the style stay constant? One home-furnish¬
ings manufacturer demonstrates continuous innovation, another is proud of
the stability of his design. These are among the product and brand policy
questions that affect the rest of the marketing mix.

Pricing. The price at which a product is to be offered affects its en¬

tire marketing program. A frozen-food manufacturer needs supermarket dis¬
tribution, but he can decide whether to offer a high-quality, higher-priced
product, or one that meets a lower-price market. Most consumer goods are
made in different price ranges: Stockings are made to sell for 39 cents a pair;
they are also made to sell for $2.50 per pair, or higher. The price at which a
manufacturer offers his stockings may affect his entire marketing pattern and
advertising plans.
The subject of pricing is more complex than is appropriate for ex¬
tended discussion here, but is cited as a major element of the marketing mix.

Distribution. One of the important decisions that has to be made

in marketing a product is that of selecting the channels for distributing it.
There has been a change going on for many years in the so-called
traditional channels of distribution. Watches were traditionally sold in
jewelry stores, till Timex came along and sold them through stationery and
drug stores.
A manufacturer may decide to sell through house-to-house salesmen,
to sell by mail, to sell through the trade via his own salesmen or through a
sales agency.
A television manufacturer can decide whether to seek broader dis¬
tribution with relatively more promotional support via advertising; in the TV
industry this has traditionally been done by RCA, GE, and other "mass mar-
keters,” using department stores and discount houses. Or he may seek more 51
The Roles
selective distribution with relatively more support at the exclusive-dealer
of
level; this has been pursued by Magnavox and Stromberg Carlson. Advertising
A foundation-garment manufacturer may follow a marketing strategy
of prefitted merchandise, sold at low prices through department stores aimed
at the mass market, as Playtex did. Or he may provide more fashion-oriented,
higher-priced merchandise, sold on a custom-fitted basis primarily through
the women’s apparel shops, as has been more traditional in the industry.
The decision 'on the distribution method is one of the important
elements in the marketing mix.

Sales representatives. Personal selling was here before advertising.

Some concerns still depend on sales representatives for their consumer opera¬
tion, as does Avon Products with its large staff of women who sell in the
home; some businesses do not use salesmen at all—for instance, mail-order
houses. Between these two extremes, the salesman represents varying de¬
grees of importance and is used at varying junctures in a marketing plan. In
the consumer field of self-service products, the salesman is not called upon
directly to initiate consumer sales; that is chiefly the burden of the advertising.
He is, however, of most importance in getting distribution through the trade,
in presenting the company’s deals and offers, and, wherever allowed, to see
that the goods are well displayed. As a product gets more expensive or tech¬
nical, the sales representative plays a more important role in the buyer’s final
decision-making process, as in the case of household appliances and cars in
the consumer field, and of all marketing in the field of selling to industry.
All these elements of the marketing mix are usually decided before
the question of advertising arises. Although this book deals with advertising,
it is always well to remember when the use of advertising is being considered,
that it is only one variable in the marketing mix.

Variations in the Importance of Advertising

Advertising may be the most conspicuous element in the marketing picture,

but it is not equally important in all situations. In some instances it can work
well; in other instances it is ineffective. What are some of the conditions under
which it is useful, and when is it not useful?

Conditions Conducive to the Use of Advertising

Among the conditions favorable to the use of advertising are the

following:

1. A good product. This is the single most important factor in the

 52 success of advertising. This point was demonstrated by Preston Townley,
The Place marketing director of General Mills, in his 1971 remarks to the Federal
°f Trade Commission. He described the fate of Clackers, a graham-flavored
Werbung
ready-to-eat cereal introduced in 1968. Consumer research had indicated high
initial enthusiasm for the idea of a graham cereal, and consumer taste-testing
research was positive. Gaining proper distribution and determining an appro¬
priate price did not prove difficult. The main burden of success was thus
thought to rest on the advertising. The advertising approach scored well in
consumer tests and in the marketplace; initial sales were high. Yet after six
months, sales began to decline, and continued to do so, despite the obvious
consumer willingness to try the product. Wfiat went wrong? In Townley s
words, "The major culprit was the product; few people bought it more than
once! . . . Perhaps the porous disc form of the product was too hard; perhaps
graham is not a sustaining flavor for a dry cereal, or perhaps ... it should
have been made sweeter . . . [for] children. Townley s conclusion: The
product can completely cancel advertising’s potential.” 2

2. The product should have a significant differential. When a new

product appears on the scene, it should offer something that existing ones
do not have. If it is identical with others already in the field, why should
anyone select it?
Furst and Sherman point out that "Some marketing men are misled
by thinking that they can get away with giving a product a 'new look’ through
promotional advertising. These methods may prove to be very arresting but
they fail most dramatically because they do not give the product a meaningful
social value.” 3 But in addition to the differential being significant/ it should
also be conspicuous or demonstrable. Just being of a better quality is seldom
enough; quality is one of the most difficult things to prove. For example,
if Maxwell House coffee were improved in quality and an ad were to say,
"Buy the Improved Maxwell House Coffee,” people could not see the differ¬
ential; they would have no way of telling how significant was the improvement
until they tasted it, and then wouldn’t be sure they liked it better. However,
when Maxwell House came out with their Freeze-Dried Coffee, for instant
coffee-making, people could see the different granules in the glass jar; the
differential was effective. The same was true in their introduction of the Max-
Pax filter, with its added convenience, which people could see. A differential
is a good asset also if it can be demonstrated on TV, as is done for some paper
towels to show their absorbency and strength.

2 Remarks at the FTC’s Hearings on Modern Advertising Practices, Washington,

D.C., October 29, 1971.
3 'National Food Situation,” published by Economic Research Service. U.S. De¬
partment of Agriculture, NFS-107, January, 1964, p. 10.
 The condition of a product category as Having little or no product 33
The Roles
differential is not necessarily permanent. For example, small batteries (for
flashlights, transistor radios, etc.) represent a product category where for Advertising
many years there was relatively little brand-versus-brand differentiation, and
advertising was of only modest importance. With the development of the
longer-lasting battery, Mallory aggressively advertised this differentiating
feature, and with the competitive response, advertising became a more im¬
portant factor in the marketing program of the entire battery industry.

3. The product should he identifiable by a trademark. Of what avail

is it to advertise a product if people cannot ask for it? If the trademark cannot
be applied to the product itself, perhaps it can be applied to the package. The
producers of Chiquita bananas developed a way of putting a label on the
banana without squashing it, and made Chiquita bananas advertisable.

4. The standard of quality must be maintained. When people buy

something, they buy on faith. If they buy an advertised product and they
like it, they expect the same quality next time. If they are disappointed, ad¬
vertising can never bring them back again. This is one of the reasons that the
larger the advertiser, the more he invests in quality control. People selected
Chiquita bananas because they could count on their good quality.

5. The price should fit into a market price bracket. Often, trade prac¬
tice in an industry establishes different price categories for products of similar
quality. Scotch whisky that is bottled in Scotland generally sells at a higher
price than does Scotch whisky that is shipped in in barrels and bottled in the
United States. If a firm planned to come out with a domestically bottled
Scotch whisky at a price between the two levels, it would be in trouble.

6. The product can be sold impersonally to a mass market. Advertis¬

ing is at its peak of effectiveness in impersonal selling to a mass audience, as in
self-service shopping. Here it has the chief burden of preselling shoppers on
a product before they enter the store. At the store, the product calls for quick
selection, with little time for deliberation. And if the product is sold on a
frequent repeat basis, so much the better, for the shoppers have the oppor¬
tunity to change their choice of purchase to your brand (and away from it
too, but you hope to win more customers than you lose). Conversely, if there
is only a limited market for a product, or if all its prospects are in the same
territory, sales representatives may be the important element in the marketing
mix, rather than advertising.
The following figures show how much is spent for advertising in in¬
dustries where the favorable conditions exist:
 54 Average
The Place Advertising Expenditure
°t Industry in Relation to Sales *
Werbung

Bottled soft drinks and flavors 5.36%

Soaps, cleansers 10.06%
Toilet goods, drugs 9.25%

* Advertising Age (1968-1969 figures), April 10, 1972, p. 48.

Where there is no product differentiation, price will often be the

prime consideration, and advertising expenditures will be low, as shown in
the following table:

Average
Advertising Expenditure
Industry in Relation to Sales *

Iron ore 0.00%

Coal mining 0.08%
Stone-sand-gravel 0.22%

* Ibid.

When manufactured goods become higher priced, when the prod¬

uct has technical features and the prospect wants to have demonstrations and
questions answered, the salesman becomes more important in the total mar¬
keting mix. Automobile advertising, a modest factor in the manufacturer’s
total sales budget (less than 1 percent of sales for most cars), is dwarfed by
the percentage devoted to the network of dealers and their salesmen, even
though the total of dollars spent for car advertising is large.
When a product is sold on a competitive price-bid basis for a given
set of specifications, as in the case of government contracts for raw materials,
advertising has little place in the picture. Forbes magazine made an analysis
of the American corporations whose money was best managed, based on re¬
turn of stockholders’ equity over a long period. It reports:

Is there, then, any single characteristic that all of the Top Ten share?
Only one, but it is highly important: Each of these companies sells
clearly identifiable, branded products with high reputations in their
Md— . . . The products are backed in every single case, by an image
of quality, the kind of image that can be created only by superior
products backed by superior advertising and promotion.4

Variations in Importance of Advertising

Within an Industry

Not only is there a difference in the role of advertising from industry

to industry, but within an industry there will be a big variation in the per-

4 Forbes, January 1, 1969, p. 74.

 ADVERTISING AS PERCENT OF SALES
33
Covering Total 1970 Ad Expenditures, The Roles
Including Measured and Unmeasured Media of
Werbung
Adv. as
Ad % OF
Rank Company Advertising Sales Sales

Cars:
4 General Motors Corp. $129,764,000 $18,752,354,000 0.7
9 Ford Motor Co. . 90,250,000 14,979,900,000 0.6
24 Chrysler Corp. 57,764,100 6,999,675,655 0.8
70 Volkswagen of America . 25,500,000 1,100,000,000 2.2
92 American Motors Corp. . 18,460,000 1,089,787,000 1.7

Food ••
2 General Foods Corp. 170,000,000 1,975,583,000 8.6
19 Kraftco . 65,000,000 2,751,129,000 2.4
25 Standard Brands Inc. 57,500,000 1,119,762,299 5.1
29 General Mills . 54,000,000 1,120,000,000 4.8
34 Campbell Soup Co. . 49,000,000 964,754,000 5.1
35 Kellogg Co. 48,000,000 614,411,901 7.8
41 Norton Simon Inc. 45,000,000 1,099,459,000 4.1
45 Pillsbury Co. 40,000,000 696,675,000 5.7
48 Nabisco . 38,000,000 868,900,000 14.1
53 CPC International . 33,500,000 684,400,000 4.9
54 Ralston Purina Co. 32,000,000 1,567,009,384 2.0
61 Carnation Co. . 28,130,000 1,053,358,436 2.7
65 Borden Inc. 27,000,000 1,827,341,000 1.5
70 Quaker Oats Co. . 25,500,000 597,652,000 4.3
73 McDonald’s Corp. 25,000,000 587,041,000 4.3
75 Nestle Co. 24,500,000 391,500,000* 6.3

Soap s, cleansers (and allied):

1 Procter & Gamble Co. 265,000,000 3,178,081,000 8.3
6 Colgate-Palmolive Co. 121,000,000 540,133,000 22.4
19 Lever Bros. . 65,000,000 525,000,000 12.4
50 S. C. Johnson & Son . 36,000,000 220,000,000* 16.4
96 Clorox Co. . 15,000,000 98,212,000 15.3

Drugs and cosmetics:

5 Warner-Lambert Pharmaceuticals 126,000,000 803,624,000 15.6
7 Bristol-Myers Co. . 117,000,000 981,155,000 11.9
8 American Home Products Corp. 100,000,000 1,050,039,000 9.5
13 Sterling Drug Inc. 76,900,000 405,084,000 19.0
27 Richardson-Merrell Inc. . 57,000,000 380,620,000 15.0
33 Alberto-Culver Co. 52,000,000 170,062,591 30.6
35 Miles Laboratories . 48,000,000 296,495,000 16.2
46 Johnson & Johnson . 39,000,000 705,427,000 5.5
46 Pfizer Inc. 39,000,000 458,900,000 8.4
49 Schering-Plough Inc. 37,500,000 402,239,000 9.3
56 Carter-Wallace Inc. . 30,750,000 129,660,000 23.7
59 Smith Kline & French . 29,100,000 347,023,000 8.4
62 Morton-Norwich Products . 28,000,000 320,723,000 8.7
65 J. B. Williams Co. 27,000,000 75,000,000* 36.0
68 Chesebrough-Pond’s 26,000,000 260,986,000 10.0
Revlon Inc. . 26,000,000 371,335,106 7.0
68 Reprinted with per¬
Merck & Co. 23,540,000 747,562,000 3.1
76 mission from the
23,000,000 75,667,000 30.4
78 Block Drug Co.
20,500,000 95,000,000* 21.6 August 30, 1971
83 Mennen Co.
19,000,000 64,262,000 29.6 issue of Advertising
88 Noxell Corp.
Age. Copyright 1971
Gum anti candy: by Crain Communi¬
22,749,500 176,832,000 12.2
80 Wm. Wrigley Jr. Co. cations, Inc. This is
10,875,000 140,000,000* 7.8
100 Mars Inc. an excerpt from
9

Note: All ad totals are domestic. Wherever possible, AA has reported the company s “100 Leader’s Ad¬
domestic sales figure in this table, although for some companies only a worldwide sales total vertising as Percent
was available. of Sales.”
* Domestic sales estimated by AA.
 56 centage of sales different companies spend on their advertising. For example,
The Place
in 1970, in the food field, Nabisco spent 14.1 percent of its sales on advertis¬
of
Advertising ing, General Foods 8.6 percent, Campbell’s Soup 5.1 percent, Borden Com¬
pany 1.5 percent. We do not have the figures available regarding how much
these companies spent on other sales expenses, or how much they invested in
product research or in other company expansion programs. All we can say is
that each company sets its own goals for the way it wishes to invest its in¬
come in advertising. In the drug field, there are similar big differences: J. B.
Williams spent 36 percent, American Home Products 9.5 percent, Revlon 7
percent.5 On the other hand, Avon Products, whose sales are twice those of
Revlon, spent so little on advertising that it is not listed among the 100 largest
advertisers; the key to their marketing mix is the in-home women representa¬
tives. They invested their sales expenditure chiefly in their field-force operation.
In the home vacuum-cleaner industry, Electrolux has for years made
door-to-door selling (direct distribution) the major part of its marketing
program. Its advertising expenditures have been virtually nonexistent. In
marked contrast, General Electric and Hoover spend much more on advertising
their vacuum cleaners, which are sold through retail outlets.

Advertising as Affected by Social Trends

Basic trends in consumer living styles and habits can affect the im¬
portance of advertising for an entire product category. Convenience food
products became popular during the 1950’s and 1960’s; their advertising
budgets grew also. In contrast, advertising became less effective for calorie¬
laden foods in that time. The "no deposit, no return” glass bottle, a heavily
advertised feature in the 1950’s and 1960’s became far less "advertisable” in
the ecology-oriented 1970’s.
The current concern for ecology has had a direct impact on the ad-
vertisability of nonreturnable bottles. Nonphosphate detergents have emerged
as a meaningful product category. By late 1971 a national survey showed that
34 percent of women reported use of a nonphosphate household cleaner, and
8 percent a nonphosphate detergent for dishes.6
65 years ago, three million dozen felt hats were manufactured; the
figure for 1970 was only about 20,000 dozen.7 Chief among the reasons, ac¬
cording to hat men, are automobiles and the growth of the suburbs. More
men were driving regularly, with their cars providing a substitute head cover¬
ing. Longer hair styles were also a factor. (College men were the originators
of the hatless movement, decades ago.) And more informal living also hurts

5 Advertising Age, August 30, 1971, p. 22.

(i Venet Advertising Inc. survey, reported in Marketing News, Vol. V, Number 11,
Dec. 1, 1971.
7 Leonard Sloane, New York Times News Service, Boston Herald-Traveler, February
6, 1972.
men’s hats, seen as a symbol of older, more formal times. Even a costly ad- .57
vertising campaign could not overcome these social factors. 0j
The widespread popularity of home sewing among women (18-35) Advertising

has caused a growth in the industries supplying fashion and sewing materials
from three billion dollars in I960 to ten billion dollars in 1970. (Another
sign of the boom: the number of books published on home sewing.)
Technical changes may also affect the desirability of a product and
the potency of its advertising. Until about 1967 aerosol starch was one of the
fastest-growing products on the shelves of supermarkets. But then along
came wash-and-wear clothes and permanent press and double knit garments,
and the business has been sliding ever since. No amount of advertising can
reverse such trends.

Other Ways of Viewing Advertising

Advertising according to who does it. Most advertising is that of

firms to increase the sales of their products or services. But much advertising
is also done by trade associations to help the entire industry. The Dairy Asso¬
ciation advertises "Drink milk at bedtime—sleep better tonight"; the Wool
Council uses advertising to popularize wool; the Wallpaper Council adver¬
tises "Wallpaper a room and give it vivid new color," while the American
Wood Council advertises the advantages of building with wood. Such efforts
by trade associations are to expand the total market for the products of their
members, to meet the competition of other materials or of adverse trends,
and otherwise to meet the public relations problems facing the industry. (Illus¬
tration on page 69.)

Advertising according to the subject advertised. Most advertising

in the United States is for products—foods, soft drinks, detergents, beauty
aids, cars, tires, paint. There is much advertising also for services—airlines,
car rentals, banks, insurance companies, travel agencies. Then there is the
form of advertising called institutional, which does not try to sell a specific
product of a company, but rather is devoted to the company as a whole, tell¬
ing of its policies or ideals, or ways of handling a problem, seeking to generate
a favorable attitude that will redound to the benefit of its products and
services at such time as people are in the market for them.

Advertising according to the stage of the marketing journey to which

it is applied. Think of a product in terms of its journey through the distribut¬
ing process, from the point at which it is made to the point at which it is
bought by its final user. Advertising is used to move that product along in its
journey, and differs in its immediate objective at various parts of the trip; it
is identified as follows:
 38 1. National advertising
The Place 2. Retail advertising
°f 3. Trade (and professional) advertising
Werbung
4. Industrial advertising
5. End-product advertising
6. Direct-response advertising

1. National advertising. The term national advertising has a special

meaning. It is the advertising by a producer aimed directly at consumers, ask¬
ing them to buy his trademarked product, at whatever store they wish. Na¬
tional advertising, as the term is commonly used, refers not to the extent of
the advertising, but to its purpose, which is to leave the consumer favorably
disposed toward buying the product. It is through national advertising that
we have come to know the vast lexicon of brand names, such as Colgate
toothpaste, Brillo steel-wool pads, Heinz chili sauce, Hotpoint washers,
Toyota cars, Ked shoes—the list is endless—sold through many outlets.
When most people speak of "advertised products,” they usually refer to
nationally advertised products. (Illustration on page 62.)

2. Retail advertising. Retail advertising is also aimed directly at

consumers. It is that advertising of a merchant or dealer that is designed to
cause the consumer to visit and to buy at his store. Chief among the retail ad¬
vertisers are department stores, discount stores, chain stores, and super¬
markets. (Illustration on page 64.)
National advertising says, "When you want good sheets, buy Wam-
sutta sheets.” Retail advertising says, "Select your Wamsutta sheets here,
from our large white-goods assortment.” Moreover, much retail advertising
deals with products that are not nationally advertised, particularly style
products, as well as the retailer’s own branded goods.

3. Trade (and professional) advertising. We think of the man who

runs a store as one who is always occupied in selling his wares, but a great
part of his work is buying the things he is going to sell. He is an important
buyer of goods in quantity. When a manufacturer who hopes to sell to and
through such retailers advertises to them, explaining why they should buy and
sell his particular wares, his advertising is called trade advertising. Trade
advertising is addressed not to the consumer of the product advertised, but
to the retailer who is to sell that product to the consumer. Closely related is
professional advertising, the advertising directed by the maker or seller of a
product to someone who can either recommend its use to others or who speci¬
fies or buys it for use by those whom he advises. Manufacturers advertise to
physicians, dentists, and architects, not in the expectation that the physician
or dentist or architect will consume the product personally, but that he will
prescribe, recommend, or specify it to those who will buy it on his recommen¬
dation. (Illustration on page 63.)
 4. Industrial advertising. A manufacturer is a buyer of the machinery, 59
The Roles
equipment, and raw materials used in producing the goods he sells. He is also
of
a buyer of the materials and components that go into the making of his Advertising

product. Those who have machinery, equipment, or material to sell to other

producers will address their advertising especially to them. It is quite unlike
consumer advertising (as we discuss later) and is referred to as industrial
advertising. (Illustration on page 67.)

5. End-product advertising. Cluett, Peabody have a patented process

called Sanforizing, to prevent the shrinkage of fabrics. They sell it to mills,
which use it in the fabrics they weave; these mills sell their fabrics to garment
manufacturers who make the shirts the consumer buys. Although Cluett, Pea¬
body sells its product to the mills, it advertises to the consumer, telling the
advantage of Sanforizing, and urging him to look for the Sanforized tag or
label in the shirt he buys. The process of a manufacturer’s advertising to the
end users of his product, rather than to those to whom he sells, is called end-
product advertising. Much consumer advertising of men’s and women’s wear
is the end-product advertising of the mills that produce the fabrics of which
the garments are made.
Du Pont makes Teflon II for lining pots and pans, selling it to manu¬
facturers of such products. To encourage women to ask for pots and pans so
lined, du Pont advertises to the end user, the housewife, telling her of the
advantage of pots and pans marked with a Teflon II tag. The customer asks
for such pots and pans at the store. The store seeks them from the manu¬
facturer. The manufacturer has to order Teflon II from du Pont. Everybody
is happy—or should be. (Illustration on page 66.)

6. Direct-response advertising. Yet another kind of advertising is the

one that seeks direct response from the consumer—either by mailing in an
order for the product advertised, or by returning a coupon for a catalog or for
more information (or for a salesman to call) or else doing so by phone or
cablevision. Mail-order advertising is, of course, a form of total selling, not
merely advertising. Direct-response advertising differs from retail advertising
in that the latter tries to get the consumer to come into the store; direct-
response advertising wants an immediate response from the ad. It differs from
national advertising in that the latter tries to get people to ask for a particular
trademarked product wherever it is convenient to buy it; direct-response ad¬
vertising seeks an immediate reply. (Illustration on page 65.)

Comparison of forms of advertising by marketing function. The vari¬

ous forms of advertising mentioned here may be characterized by the way in
which they seek to encourage the transfer of goods from the maker to the
user. Much of our economy is devoted to branded consumer goods that are
widely advertised by the manufacturer to get the consumer to buy them at
 60 a store. Hence, in this book we view advertising chiefly from the point of
The Place
view of its use by the producer, referred to as national advertising. Later we
°f
Advertising shall have special discussions of retail, trade, industrial, and direct-response
advertising.

Other Purposes of Advertising

Advertising in the United States is used for many purposes other than to sell
goods and services. It is used to fight drug addiction and to battle pollution.
It is used to raise funds for research against diseases. It is used to elect men
to office, and then to oppose the laws they are proposing. It is used by
groups to oppose the way things are being run. It is used by unions to tell
why they are striking, and by employers to tell how unreasonable the unions
are. It is used to raise funds for community chests and to help the afflicted in
far-off countries and for other public service causes. Most of such advertising
is done by nonprofit groups dedicated to a cause. Often, public-service adver¬
tising is sponsored by a corporation that is public-spirited and sees a con¬
sistency with their own long-range goals in supporting the cause sponsored.
In brief, advertising represents a technique and a facility open in the United
States to all who have a message to spread before the public.
Although this book speaks of the advertising of products and services,
we are really discussing a technique for delivering a message, at low cost per
message, to a lot of people—whatever the message may be.

PUBLIC BROADCASTING CONTRIBUTIONS

BY INDUSTRY
Support of at least $50,000 and up to as much as $1,500,000 has been in¬
dividually granted by these leading corporations for national public
television program underwriting:

Celanese—The Great Teachers Martin-Marietta—Boston Pops

Ciby-Geigy—The Restless Earth Minnesota Mining & Manufacturing
Coca-Cola—General Programming —The Quiet Epidemic, “V.D.”
Faberge—General Programming Mobil Oil—Masterpiece Theatre
General Electric—International Per- Polaroid—French Chef
formance Quaker Oats—Sesame Street repeats
General Foods—Sesame Street Schlitz—July 4 Parade
repeats Sears, Roebuck—Mister Rogers
General Telephone & Electronics Standard Oil (New Jersey)—Vibra-
Helen Hayes Special; Joan Suther¬ tions & Age of Kings
land, opera plus other dramatic Trans-World Airways—EEN News-
specials front
IBM—Hanzel & Gretel Xerox—Civilisation *

Source: Initiatives in Corporate Responsibility, report prepared by Honorable Frank

E. Moss, Chairman, Consumer Subcommittee, for the use of the Committee on Com¬
merce of the United States Senate (Washington, D.C.: U.S. Government Printing
Office, 1972), p. 10.
Some Examples
"The best to you each morningV

When you’re eight years old, NUTRITIONAL FACTS

One ounce of Kellogg’s Sugar Frosted Flakes pro-
Mornings are long and full of vides these percentages of an adult's officially
established minimum daily requirements (MDR):
Percent MDR in—
sunny hours and it seems like a Sugar Frosted Flakes Sugar Frosted Flakes
1 oz. with W cup
NUTRIENT
year till lunch—but they’re never VITAMIN A
(Y* cup)
33%
Whole Milk*
37%
VITAMIN D 33% 45%“
long enough for all you want to VITAMIN C 33% 37%
NIACIN 33% 34%
do. Which means that the 8-year- THIAMINE (B.) 33% 37%
RIBOFLAVIN (B,) 33% 50%
old engine is a very busy one. It IRON 7% 7%
PHOSPHORUS 15%
better start that long morning CALCIUM
•♦'VITAMIN Be 0.6 mg
—
19%
0.65 mg
•••VITAMIN Bu
with a good breakfast. . ... . ♦••MAGNESIUM
1.6 meg
2.0 mg
2.1 meg
17.9 mg
Like one built around his favor¬ TYPICAL NUTRITIONAL COMPOSITION
SUGAR FROSTED FLAKES SUGAR FROSTED FLAKES
ite cereal, Kellogg’s Sugar Frosted % of Total
Weight
Amount in
1 oz.
With VS cup
Whole Milk*
Protein 4.8% 1.4 gm 5.7 gm
Flakes with milk. He won’t mind
stopping for that. (And it’s a good
idea for grown-ups too.) SUGAR
Xrua#
&
Fat
Carbohydrates
Calories
1.2%
88.6%

and USDA report No. 36.

0.3 gm
25.1 gm
109 calories
4.6 gm
31.1 gm
189 calories
•Whole Milk values derived from USDA Handbook No. 8

••Vitamin D fortified milk at 400 USP units/quart.

•••Minimum daily adult requirements have not been

FROSTED FLAKES. established.

National Advertising

This is the advertisement of a producer telling consumers of the values of

the product bearing his trademark. Purpose: to get them to ask for it at
any store where it is available.
62
A PROFITABLE TIP FROM KELLOGG'S:

We’re promoting good

breakfast nutrition
to help you sell the
nourishing foods needed
for a good morning meal.
This is the Basic Cereal and Milk Breakfast. It
includes foods from three of the "Basic 4” Food
Groups, and is the kind of morning meal nutri¬
tionists say makes a good breakfast.
We are telling today’s nutrition-conscious
consumers about this breakfast in our current
advertising. It’s advertising to assure your cus¬
tomers that their favorite Kellogg’s cereals are
as good for them as they are good-tasting. And,
it’s advertising to help you sell even more of
Kellogg’s popular cereals, as well as the other
nourishing foods featured in this Basic Cereal
and Milk Breakfast.

FULL-COLOR MAGAZINE ADS,

TELEVISION, AND MILLIONS OF
KELLOGG'S CEREAL PACKAGES
WILL PROMOTE THE IMPOR¬
TANCE OF BREAKFAST.

Our print campaign, alone, will

reach 84% of U.S. adults over
six times. The 4-color, full-page
bleed ads will be seen by readers
of these leading magazines:

• FAMILY CIRCLE

• LADIES' HOME
JOURNAL
• NATIONAL
GEOGRAPHIC • BETTER HOMES
& GARDENS
• READER'S DIGEST
• EBONY
• McCALL'S
• AMERICAN HOME
• PARENTS
• REDBOOK
• GOOD
HOUSEKEEPING • SUNSET

Breakfast. Let’s sett it together. • WOMAN'S DAY • SOUTHERN LIVING

SATURDAY EVENING POST (Quarterly)

(?) Kellogg Company © 1971 by Kellogp Company

Trade Advertisement

This advertisement by Kellogg’s is addressed to the trade, telling of

the profit of stocking and selling this highly advertised brand. Pur¬
pose: to get retailers to order it.
63
 Nurses watch

Ladies 2 diamond

Mens ultra thin dress

Ladies petite dress

Ladies 2 diamond
Mens shock &
Ladies calendar sport water resistant

Ladies sport
Famous Brand, 17 & 21 Jewel

WATCHES
$'|Q66 Hurry! Many one
and two of a kind

BENRUS -GRUEN -ELGIN

•HELBROS -WALHAM
These nationally advertised, famous brand watches at our low,
low price will probably cost you less than having your old
watch repaired! You’re sure to recognize these name brands
that are backed by decades of superb styling and excellent
quality. Get one for yourself or keep one in mind for a Mother's
Day gift!
Ladies petite dress

CHARGE IT "AT VENTURE!

2-4 stone ring

WIND IT ONCE
A YEAR

FAMOUS MAKER ANNIVERSARY LADIES MOTHER’S

COSTUME JEWELRY CLOCK LEATHER GOODS RING
$2988 $1487
Great selection of ropes, pins, Polished brass base and Flemish
necklaces, earrings and more! Genuine leather clutches. French Ring in white or yellow gold,
swirl posts. Glass dome
purses, wallets. Gift boxed.
5-7 stone ring $19.87

You Pay Less at Venture Every Day!

ST. LOUIS, MO.

..
OVERLAND. MO.
a store for QUALITY
KIRKWOOD. MO.
VENTURE
VL-IVIUnC
NORTH COUNTY
a store for VALUE

S. Kingshighway & Christy Blvd. FAIRVIEW HEIGHTS. ILL ALTON. ILL.

Page & Innerbelt S. Lindbergh & B,g Bend Dunn Rd. (1-270) at West Flonssaot
U.S. 50 & III. 159 Beltline Hwy. at Washington
Open Daily 9:30 AM 10:00 PM . Saturday 9:00 AM-10:00 PM
Sundays in Fairview Heights and Alton Noon to 6:00 P.M.

Retail Advertisement

The purpose of this discount store advertisement is to get readers to come to the
store for these nationally advertised watches, and for other items advertised; also
to establish the store as a low-price place to buy.
64
 ip
A happy ending ^«C

starts with
7658. DECORATING CAKES AND
PARTY FOODS - BAKINS TOO!
3O04.THE GOOD HOUSEKEEPIHG
COOKBOOK. Ed, Oorothy 8.
■■■
Louise Spencer. Cakes, buffet Marsh. 3,500 creative recipes,
spreads with “catered took.’' illustrated. Pub. edition $8.60
Photos, Put), edition $8.95
7120. ft WORLD OF 88EA0S.
1941.THE NEW YORK TIMES Dolores Caseiia. 600 recipes
URGE TYPE COOKBOOK. Jean for the specialties of many
Hewitt No more losing your lands. Pub. edition $7.95
place. 300 jumtjo-size recipes. Gail Hoiis«8F® f
Pub. edition $9.“' 7427. CASSEROLE TREASURY.

7435. BETTr CROCKER'S COOK-

Lmtsene Rousseau Bruntter. 435
easy-to-follow gourmet recipes.
MHMilMNWt |
BOOK, grand new with l.SOO Pub. edition $4.95
recipes. Nearly 900 pictures
270 in color! Pub. edition $5,95 7492. MENUS TOR ENTERTAIN.
»NG. James Beard, Gives over
^vseroie
7641. FREEZING ANDCANNING LOG of his menus {with rsc^
COOKBOOK. Farm Journal Edi¬ ipes}. Pub. edition $8.50
tors. More than 1000 prired
recipes. Pub. edition. $5.95
7625. CHINESE COOKING WfTH
ml. THE QUICK * EASY ELEC¬
TRIC SKILLET COOKBOOK. Ceil •'m... 4
Dyer. 200 recipes for nutritious
AMERICAN MEALS. Mo*ra Hodg¬
mceis. Pub. edition $5.95
son. Liven up American menus
with Chinese dishes. Pub. edi¬ ■«>.. \V 'ys TOnwt,
tion $5.85
7286. SAVORYSTEWS. Min Sa*.
HAMBURGER
age. A prize recipe collection
of 150 plain and fancy stews ~
aii iip*smacking good! Pub.
edition $4.95
7674. LEONE'S ITALIAN COOK.
BOOK. Gene Leone. Over 300
recipes front the famous Mama
Leone’s restaurant. Pub. edi¬
tion $6.95
7328. HELOISE'S KITCHEN
HINTS & KEtQfSE ALL AROUND
THE HOUSE. Clever “how-to”
hetp. 2 volumes count as l
book. Pub. edition $7.90
7179. THE COMPLETE ROUND
THE WORLD MEAT COOKBOOK.
Myra Waldo. Aii basic informa¬
tion plus 600 foreign recipes.
Pub. edition $6.95
7336. 3G5 WAYS TO COOK HAM-
a good beginning
BURGER. Doyne HicKerson.
Deviibutgers. upside-down pie
- even hamburger sukiyak*’
Pub. edition $4.95
Begin here with you now and only
H
If join agree to accept four

OW DO YOU START a perfect meal? By start¬

ing with a perfect recipe. That’s where
any 3 cook books for$1 selections or alternates over the next twp years.

we come in. Cook Book Guild. We’ve built our Cook Book Guild, Dept. BM-080, Garden City, N. Y. 11530
reputation by offering our members the world’s Please accept my application for membership in the Cook Book Guild and send me the 3
valuable cook books whose numbers I have printed in the boxes below. Bill me only $1.00,
outstanding cook books—at savings that aver¬ plus shipping and handling, for all 3. My handy Recipe Finder and 2-way Cook Book Shelf
age 30% or higher, plus shipping and handling. will be included FREE with trial membership.
Our members rely on Cook Book Guild books. About every 4 weeks, send me the Guild’s bulletin, Cook Book News, describing the next
Featured Selection and a variety of Alternate choices. If I wish to receive the Featured Selec¬
They know from experience that the Guild has tion, I need do nothing; it will be shipped to me automatically. Whenever I prefer an Alternate,
the best cook books, full of imaginative dishes or no book at all, I will notify you by the date specified by returning the convenient form
. . . the best recipes, with the easiest directions always provided.
I need take only 4 Selections or Alternates during the next 2 years, and may resign any time
for preparing them...and the best menu ideas, thereafter. The prices of books offered will average 30% below the prices of publishers’ edi¬
that simply cannot be found anywhere else. tions, plus a modest charge for shipping and handling.
If you’ve always wanted your own library of NO-RISK GUARANTEE: If not delighted, I may return the entire introductory package
cook books, here’s the best chance you’ll ever within 10 days. Membership will be canceled and I will owe nothing.
BOOK NUMBERS
have. Begin a trial membership Mr.
Mrs. __
by picking any 3 cook books on Extra FREE GIFTS Miss U-Ies Print}
this page for only SI, plus ship¬ with trial membership Address_
ping and handling. You agree to
2-Way Cook Book Shelf. City.
purchase only 4 books within the
Stands on counter or
next 2 years. hangs on wall. State- Zip
The coupon will get you off to Q Check here if you have previously been a member of Cook Book Guild.
Recipe Finder. Thumb-
a good start. Use it. Cook Book indexed cross reference Members accepted in U-S. A. and Canada only. Canadian members will be _ .
Guild, Garden City, N.Y. 11530 locates favorite recipes. serviced from Toronto. Offer slightly different in Canada. 4*:*C7bC

me Cook Book Guild offers Its own complete, hardbound editions, sometimes altered slightly in size to fit special presses and save members even more.

Direct-Response Advertising

Within the space of this one advertisement, the advertiser hopes to induce the reader to
order the books by sending in the coupon—characteristic of all direct-response advertise¬
ments.
 How you can tell that
the cookware you’re giving
a aiftfeltaii

You won't be doing anybody a TEFLON II Quality Seal is

favor by giving them cookware that your assurance of a no-stick, easy-
just looks good. If food sticks to it clean finish that's been tested and
and it has to be scoured and scoured, approved by Du Pont.
it isn't a gift. TEFLON ii It tells you the
If it comes with the TEFLON II* cookware void re
Quality Seal, it’s really something to giving is really a gift.
V,,' $

♦TEFLON is Du Pont_s registered trademark for its non-stick finishes TEFLON H ts Du Fonts certification mark
for sera ten-resist ant I ErLON-coated cookware which meets Du Pont Standards.

End-Product Advertisement

A du Pont advertisement addressed to the housewife telling of the advan¬

tages of cooking ware lined with Teflon II, which it sells to the manu¬
facturers of such goods. Purpose: to induce manufacturers to use Teflon II
in their pots and pans.

66
See it at the Machine Tool Show
Moore Model G-48

The largest Precision Jig Grinder (No. 5)

with travel of
24 inches x 48 inches
(600 mm x 1200 mm).

MOORE
Jig Grinder
ever built

Introducers of jig grinding to industry 30 years ago and millionths inch (0,8 ftm). Total accumulative error in
pioneers of every major improvement in jig grinding the longitudinal travel is 150 millionths inch (3,8 /xm),
since then, Moore Special Tool Company will exhibit and in the cross travel, 90 millionths inch (2,3 /xm).
at the International Machine Tool Show — and for the Like the Moore No. 3 jig grinders, jig borers and meas¬
first time anywhere — its new Model G-48 Jig Grinder uring machines, the G-48 carries a 10-year guarantee
(No. 5). of accuracy.
The machine — with a travel of 24 inches x 48 inches Don’t miss the inaugural performance of this machine
(600 mm x 1200 mm) — will be demonstrated under at McCormick Place—Moore Booth No. 2412. It prom¬
power, jig-grinding a jumbo-size workpiece. ises to be among the most talked-about new develop¬
ments there.
Built into the G-48’s large capacity and its capability
of jig grinding in the largest size range is the Moore If you’d like advance information and literature on the
tradition of extremely close precision. Repeatability of G-48 Jig Grinder, write R. W. Kuba, World Sales Man¬
settings is 5 millionths inch (0,15 /xm). In longitudinal ager, Moore Special Tool Co., Inc., 800 Union Avenue,
and cross travel the greatest error in any inch is 30 Bridgeport, Conn. 06607.

MOORE Special Tool Co., Inc.

( PRECISION )
Bridgeport, Connecticut 06607
European Technical Center: 8005 Zurich, Switzerland VTAAIV
Far East Technical and Training Center:
International Machine Co., Ltd., Tokyo, Japan
Manufacturers of Jig Borers, Jig Grinders, Universal Measuring Machines. Rotary Tables, Tool Room Products,
and High Precision Measuring Instruments and Physical Standards.

Industrial Advertising

An advertisement by one machine tool manufacturer to other manu¬

facturers who could use such equipment. Purpose: to get manufacturers
to buy this equipment.

67
 Now Avis has an easy new way to rent a car. The Wizard1* Golden FilefM
With it, you call for a reservation, give us your Golden File number, and
your rental form will be waiting for you by the time you get to the counter.
Then simply show your drivers license and charge card, sign your name,
and you’re away in your sparkling new Plymouth or other fine car.
Nothing could be faster.
We recently introduced The Wizard of Avis, the most advanced
computer system in the travel business, to make it easier to rent a car. And now
The Golden File makes things even easier.

r 1

The Avis Golden File.

Call 800-231-6000*for an application or send in this one
to get your Golden File identification card.
Card to be used:
LAST NAME FIRST NAME MIDDLE INITIAL (Please select only one.) (Include all letters.)
□ Avis No.
HOME ADDRESS " ~ □ Air Travel No.
CD American Express No.
CTFT STATE ZIP CODE □ Diners’Club No..
□ Other (Specify)
COMPANY NAME --
_ No.
Usual car preference:
□ Luxury (Chrysler, Imperial,or Equivalent)
COMPANY ADDRESS ~
CD Standard (Fury, Polara,or Equivalent)
□ Intermediate (Satellite or Equivalent)
"CITY state zip code
SEND BILLS TO HOME □ OR COMPANY □ ADDRESS CD Economy (Duster, Demon, or Equivalent)
Do you normally purchase the collision damage
waiver as part of your rentals? DYes DNo
DRIVERS LICENSE NO --
Do you normally purchase safe trip insurance as
part of your rentals? DYes DNo
STATE OF ISSUE " ----
□ If you want an Avis Charge Card application,
check here.
EXPIRATION DATE MONTH DAY YEAR
Mail to: Avis, 900 Old Country Rd.
Garden City, N.Y. 11530
PLEASE ENTER AID NUMBER (IF APPLICABLE) ~ Attention: Wizard Golden File, Dept. 115

Avis. We try harder.

* WIZARD IS A REGISTERED TRADEMARK AND GOLDEN FILE IS A SERVICE MARK OF AVIS RFNT A
CAR SYSTEM-INC ©AVIS RENTA CAR SYSTEM. INC
•IN TEXASCALL 800-392 3966
L
J

An Advertisement by a Service

An increasing proportion of our national economy deals with the

rendering of services. Much of the same technique used in advertising
products applies to services. Purpose of the advertising: to reach
those people who could use the service; induce them to do so.

68
 How to get
more house out of your next house.
Your next house may great weathering qualities. are built with wood.
well be the biggest and the Which means they’ll last By now we hope we’ve
best investment you’ll the lifetime of your house. whetted your appetite for
ever make. Inside, wood adds still more facts.
So, naturally, you’ll more value. Just send for our
want to get the most for Prefinished or tex¬ House-Hunter’s Guide
your money tured wood paneling not (with free mortgage cal¬
Which means you’ll only looks warm and culator). Or our Home
want to think about where beautiful. It also never Improvement Guide.
it’s built. How it’s built. needs painting. And is Both are crammed full of
And what it’s built out of. easy to clean. facts and come with a free
We think one of the New wood floor sys¬ guide to wood products.
best things to build with tems of finished hardwood When you’re making
is wood. on plywood glued to sup¬ the biggest investment of
Because wood gives porting beams are quiet your life, you need all the
lasting value. and comfortable to walk facts you can get.
Take a house with a on. And unlike carpeting,
American
roof of wood shingles or a hardwood floor is I Wood Council
shakes. permanent. Box 4156T, Chevy Chase, Md. 20015
Please send
Sure they’re beautiful. What makes wood _House Hunter's Guide 50c each
But they’re also wind even more valuable is the I _Home Improvement Guide 50c each
I _Send both Guides $1.00
resistant. Durable. And strength it adds to your
insulate against cold and house. Name

heat better than any other In the 1964 Alaskan

Address
material. earthquake and hurricane
City State Zip
If your next house has Camille, wood frame ___J
wood siding —plywood, houses with wood
boards, shingles or sheathing held up
hardboard — you’ll have much better than
added value. other kinds of
Many wood sidings construction.
need no finishing or No wonder 8 out of
maintenance at all. 10 homes in America
Others can be stained
to bring out all the beauty
of wood’s natural gi .ins
or sawn textures. Or
painted with new acrylic
or latex finishes that’ll
stay fresh up to six years.
All wood sidings have

Association Advertising

Trade associations frequently advertise to meet the problems facing the

entire industry. Here the American Wood Council presents the ad¬
vantages of wood, to meet the competition of other materials used in
home construction.

69
 Last year, Nicky K.,age three, drank a bottle of furniture polish.
A telephone number saved his life.

Wmm
The poisoning took place something more than advice effort on our part to show
in Tyringham, Mass. over the telephone—like a doc¬ people how to avoid emergen¬
The number belonged to tor or ambulance? cies, and how to handle those
a poison control center 135 At Metropolitan Life, we that are unavoidable.
miles away. are working to keep all those Because accidents will
But what if Nicky's par¬ what if’s” from becoming happen.
ents didn’t know it existed? “if only’s!’ And when they do, what
What if they had to waste In many communities, people don’t know can hurt
precious minutes frantically we’re distributing emergency them.
searching through phone kits with lists of numbers that
books before they could even can make the difference be¬ Metropolitan Life
attempt to reach it? tween life and death.
We sell life insurance.
And what if they needed Ifs part of a 44-year-long But our business is life.

70
 Institutional Ads (its wise to conserve energy)
for a Public Service

Save a watt. Because New York and

On these pages are two ads which are Westchester, and perhaps other places
institutional, in that they seek the public too, may face power emergencies this year.
Because now and in future years protec¬
good will for their entire company; they tion of the earth’s environment requires
are also public service ads in the message we use all kinds of energy wisely and
not wastefully.
they convey. Examples of two goals meet¬
Save a watt. Because if we start conserv¬
ing in one advertisement. ing electricity now, especially In day time,
we may avoid more serious problems
later. Con Edison is doing everything
possible to end power shortages. If new
facilities can be completed on schedule,
we will have one of the nation’s most
modern electric systems in just a few
years. But even when power is plentiful it
should be conserved.
Save a watt. Because with your help
there’s less chance of serious disruptions
of electric service this summer. And using
a[l energy wisely is essential to keeping
the earth a good place to live.

IO ways to save a watt

1 . During the day, when no one is home, turn the air
conditioning off.

2. When using air conditioners, select moderate or medium

settings rather than turning your unit on high. During the day
keep windows closed and adjust blinds and shades to keep out
the sun so that air conditioners won't have to work so hard.

3. Whenever possible, plan to run major appliances-and

smaller appliances as well - before 8 am and after 6 pm.

4. If possible, use dishwashers just once a day - after the

evening meal.

5. If possible, plan washer and dryer loads for evenings and

weekends. Do one full load instead of many small loads.

6. Keep lights off when it's daylight except for safety,

health and comfort reasons (the heat from lighting requires
more air conditioning).

1. Never leave a kitchen range or oven on when not

actually in use.

8. Turn off television and radio sets when you are not
looking or listening.

9. If you can. save once-in-a-while jobs like vacuum

cleaning or working with power tools until the weekend.

10 . When buying an air conditioner, look for the right size

unit for your needs. Select one that gives you the maximum
amount of BTU's of cooling for every watt used.

conserve
energy

71
The
Advertising Council
shakes up
a let of people.
Thank God!
We shake 'em up with tough, able to cope with the problems interest, conducted by The Advertising
factual, thought-provoking advertising around them. Council for over twenty-nine years.
on drug abuse. We jar ’em with Our product is action-oriented We get a lot of help in our job.
picture-stories of drunks on the advertising campaigns in the public Business people, advertising agencies
highways and what happens to some and advertising media. People and
people who forget safety belts. We’re companies who volunteer their space,
tough where we have to be.
Reassuring and gentle where we can
Try this on. time, talent and facilities, free! Last
year, the value of their services totaled
be. We try desperately to make people over $450 million for campaigns
alert and aware. Because we believe created and donated in the public
that people who are aware are better
interest. Campaign subjects range
from Drug Abuse
Highway Safety
Pollution
Crime
Education
Minority Business Enterprise
The Handicapped
United Funds
Jobs For Veterans
to Smokey Bear.

We work together quietly, efficiently

and effectively. It doesn’t bother us at
A mask to make people think about what it means to all that most of the people we help,
be a member of a minority group in the world of business.
One ad in the Minority Business Enterprise campaign don’t even know our name!

the Keep America beautiful campaign, t ■ mclud ? the

overall environmental pollution situation.

(JN devJsiaiihggrjf ifc, t-.is award w.nnmg pos..'r was created to-
Drug Abuse Information campaign. Its message is clear

Advertising Contributed For The Public Good

Public Service Advertising by Advertising Groups

The Advertising Council represents an advertising industry

contribution to helping public service projects.
72
 MhMNMM
■Bl

AN ORDINARY DOG IN AMERICA

EATS BETTER THAN SHE DOES.
Cristina eats whatever she can find in the garbage.
And that is far less than some prowling dog would find in
your garbage can.
For just $12 a month, you can save such a child.
Through our Children, Inc. "Adoption" program you
can help provide a child with a better diet, new clothes and
medical attention. Even an education.
But there's not a moment to lose. Every 60 seconds,
five or six more children will die from starvation.
Write direct to Mrs. Jeanne Clarke Wood, Children,
Incorporated, Box 5381, Dept. A-3, Richmond, Va. 23220.

I wish to "adopt" a boy □ girl □ in_

Name of Country

I will pay $12 a month ($144 a year). Enclosed is my gift

for □ a full year □ the first month. Please send me the
child's name, story, address and picture.
I understand that I can correspond with my child, and
continue the "adoption" longer than one year if I wish. Also,
I may discontinue the "adoption" at any time.
□ I cannot adopt" a child, but want to help $-
□ Or, I will pledge $_per month.
□ Please send me further information.
□ If for a group, please specify_
Church. Class, Club, School. Business, etc

Name-,--—-
Add ress____
Public Service Advertising
City_State-Zip-
by a Charitable Organization You can adopt a child trom any of the following countries Bolivia, Chile,
Colombia, Guatemala, Honduras, Hong Koog, India, Iran Japan Korea Lebanon,
Mexico. Nigeno, Paraguay, Peru Syria, Thailand, U S A Appalachian children or

This advertisement appealing for funds American Indians. (Or a child of greatest need.) All gifts are fully tox deductible

to help children is typical of others which

CHILDREN, INCORPORATED
have raised much money for such social
problems.

73
 74 Review Questions
The Place
°f
Advertising 1. What is meant by the "value goal 6. Why may two firms in the same
for a product"? Selecting three prod¬ business, doing the same volume,
ucts with which you are familiar, differ so much in their advertising ex¬
what would you judge the value penditure ?
goals were in producing them?
7. Can you cite some products whose
2. What is the "marketing mix?” What sales have been affected by social
are some of the elements that go into trends? In which respect?
it?
8. What is meant by the "product dif¬
3. Cite the conditions that are conducive ferentials"? What is its role in ad¬
to advertising. vertising?

4. Here are two companies each with 9. Define and give an example of:
the same volume. One sells packaged National advertising
goods to the consumer. Another sells Retail advertising
plastics to industry. What are the End product advertising
reasons the former does so much Trade advertising
more advertising than the latter? Direct response advertising
Industrial advertising
5. What lesson is to be learned from
Advertising of services
the General Mills experience with
Institutional advertising
Clackers ?
Public service advertising

Reading Suggestions
Barton, Roger, The Handbook of Ad¬ New York: McGraw-Hill Book Com¬
vertising Management. New York: pany, 1972.
McGraw-Hill Book Company, 1970. Davis, Kenneth R., Marketing Manage¬
Bogart, Leo, Strategy in Advertising. ment, 3rd edition. New York: The
New York: Harcourt, Brace & World, Ronald Press, 1972.
Inc., 1967. Excerpted in Kleppner Dougherty, Philip H., "Ma Bell a
and Settel, Exploring Advertising, p. Swinger,” The New York Times,
63. April 7, 1968, p. 77. Also in Klepp¬
Borden, Neil H., "The Concept of the ner and Settel, Exploring Advertising,
Marketing Mix," Journal of Adver¬ p. 45.
tising Research, June, 1964. Kotler, Philip, Marketing Management,
Buell, Victor (Editor), Handbook of 2nd edition. Englewood Cliffs, N.J.:
Modern Marketing. New York: Prentice-Hall, Inc., 1972.
McGraw-Hill Book Company, 1970. Kuehn, Alfred A., "How Advertising
Business Week, "How to Get Salesmen Performance Depends on Other Mar¬
Through the Doorway," June 4, 1966, keting Factors," Marketing in Prog¬
pp. 84, 89. Also in Kleppner and Set¬ ress, Hiram C. Barksdale, ed. New
tel, Exploring Advertising, p. 67. York: Holt, Rinehart & Winston,
Buzzell, Robert D., "The Role of Adver¬ Inc., 1964.
tising in the Marketing Mix," Market¬ McCarthy, E. Jerome, Basic Marketing,
ing Science Institute Special Report, 4th edition. Homewood, Ill.: Richard
October 1971. D. Irwin, Inc., 1971.
Buzzell, Robert, Robert Nourse, John McGinniss, Joe, The Selling of the Presi¬
Matthews, and Theodore Levitt, Mar¬ dent: 1968. New York: Trident
keting: A Contemporary Analysis. Press, 1969.
 n
PLANNING
THE ADVERTISING
 4
The Advertising Spiral

The following advertisement appeared in a New York newspaper. The

name of the product is omitted. What would you guess the product to be?

HAVE YOUR _ SENT HOME

BEFORE THANKSGIVING DAY
Add one more source of delight for the children and pleasure for
the grown-ups. No home is at its best until you have a_
Nothing else makes the home so bright and cheerful; nothing else
keeps the children so lively and happy; nothing else serves so well
to keep the older folks from being dull and the time from dragging.
There is pleasure for all in a house that possesses a_
Isn’t it an addition well worth having sent home before Thanksgiving
Day comes with its holiday for the children and the friends who will
visit you?

What product would you say was being advertised?

A videocassette? No.
A color television set? No.
A hi-fi set? A tape recorder? A radio? A phonograph? No.
It was the predecessor to all these, a mechanical music box, by Regina,
advertised by the John Wanamaker store in 1901.

The Advertising Stages

Yet there is an unmistakable similarity between the Regina music box ad and
those used to introduce more recent inventions, because from the time a new
type of product first appears on the market to the time various brands of that
product are household words, the product faces similar advertising stages.
These are:

—The pioneering stage

^ —The competitive stage
—The retentive stage

77
 The Advertising Stages
Chart A

A clear understanding of these stages is essential in planning basic advertising

strategy.

The Pioneering Stage

An inventor may have been working for many years on a useful new
device. When he finally succeeds, does the public arise in elation and clamor
for it? Not in most cases, because it may never have occurred to consumers
to seek such a device. Until people recognize that this is something they want,
the product is in the first, or pioneering stage.
The advertising of products in the pioneering stage (or pioneering
advertising, as we call it) must show that previous conceptions of that field
are now antiquated. Methods accepted as the only ones possible are now
shown to have been improved; satisfactions never before thought of are now
shown to be attainable; limitations tolerated as "normal” are now demon¬
strated to have been overcome safely. The safety razor supplanted the straight¬
edge razor and the advertising said, "If you are still depending upon the
barber or old-fashioned razor, you are in the same category as a man who
climbs ten flights of stairs when there is an elevator in the building. With the
Gillette Safety Razor the most inexperienced man can remove without cut or
scratch in three to five minutes any beard that ever grew.” And when the
electric shaver came upon the scene, its advertising proclaimed "no bother
or fuss of old-fashioned soap and brush ... no more shaving cuts with the
new electric shaver.” And when Remington introduced the new removable-
blade electric shaver, the advertising said, "With the new Remington you
won’t have to start searching for a repair shop when your blade gets dull.
Instead, you pop in a new set of blades, and start getting the kind of shaves
you got when the shaver was new.”—all pioneering advertising.
Even color television was launched by the pioneering advertising of
RCA Victor in the 1950’s, which said:

See World Series Baseball in Living Color. . . . Rarely in a lifetime

can you share a thrill like this. . . .You can see baseball’s greatest
spectacle come alive in your own home in color . . . you’ll sense a
new on-the-spot realism in every picture of the crowd, the players, the
action. . . . Made by RCA—the most trusted name in electronics.
Mazda presents the "Elegant” engine.
It started a
Rotary Revolution
on the West Coast
that's sweeping
the nation.
Here you see the basic bits of a 2-
rotor, rotary engine. Many call it,
“The Engine of Tomorrow.” To a
mathematician or engineer, it’s
“Elegant”—meaning, it represents
the simplest solution to a problem.
For compared to an ordinary pis¬
ton engine, a rotary has about 40%
fewer parts, weighs less by any¬
thing from a half to a third and it’s
only half the size of a Six. In addi¬
tion, because of its inherent charac¬
teristics, compact shape and small
size, the rotary’s emissions can be
controlled to meet the most strin¬
gent standards.
Perhaps a more remarkable fea¬
ture of “The Engine of Tomorrow”
is that for once it is indeed “Here
Today!”, a viable, reliable reality.
And all this thanks to a company
called Toyo Kogyo that got its start
making machine tools, rock drills
and 3-wheel trucks.
Why so remarkable? Because, if
the rotary’s simplicity is elegant,
it is also incredibly sophisticated—
a 3-lobe rotor turning through 360'
within a figure-8 shaped epitro-
choidal chamber, the rotor apexes
in constant contact with the walls. Basie eh-marts of Mazda Rotary Engine
And although since 1958 some
20 international companies have Mazda is still the only one that has out big horsepower from only 70
bought licenses to develop a rotary, managed to mass-produce thor¬ cu. in. Power that’s smooth and
Mazda RX-2 Coupe—whirling up a storm of oughly proven and utterly silent to an almost unbelievable
smooth, silent, rotary power. reliable rotary engine cars at degree. Because the rotary’s mov¬
a reasonable price. All other ing mass spins in the same direc¬
things being equal, the rea¬ tion as the driveshaft—no jiggling
son why Mazda succeeded up and down with pistonitis.
where the Giants failed must The fun and excitement of driv¬
be a matter of old-fashioned ing a Mazda Rotary is better ex¬
determination and enthusi¬ perienced than described. See your
asm. An enthusiastic auto Mazda Dealer and give it a whirl.
maker. Unusual. There’s just nothing else like it on
So much for facts. For fun, the road. The Mazda Rotary is
a Mazda RX-2 Rotary belts licensed by NSU Wankel.

M MAZDA
Toyo Kogyo Co., Ltd.

The Wankel Engine in the Pioneering Stage

The Wankel engine is not a mere improvement in the details of a present

car engine, but a revolutionary design, possibly "The Engine of To¬
morrow.’’ Before it is accepted, however, pioneering advertising is
needed to make the people understand the great advantage of this engine.
 Man might
conquer disease, stop
crime
and save his
environment with
the help of
this little machine.

The Videocassette in the Pioneering Stage

"It’s a revolutionary new means of communication—instead of

printed words, the Sony U-matic Videocassette Player-Recorder
uses television pictures and sound.” With these words heralding
a new age of communication, Sony presents its color videocassette
system.

80
 It's a revolutionary new means his technique on a U-matic color
of communication. videocassette. Thousands of
And if you wonder whether copies are made and mailed out.
that's enough to change the world Within days, thousands of
—remember the invention of the doctors in hospitals and private
printing press. offices have seen the technique on
Instead of printed words, the their U-matic, and can put it to use.
Sony U-matic Videocassette Knowledge snowballs.
Player-Recorder uses television You can see the possibilities:
pictures and sound. Long-distance teamwork among
It's television you program police in different cities. Among
yourself. Television you play back ecologists all over the world.
at will. A communications explosion in
If you have something to say or education, business, industry.
demonstrate, it records your What makes the U-matic so
''program" on a color videocas¬ especially useful is that a program
sette the size of a book. can come from many sources.
To receive a program, you just It could be something shot "live"
insert the programmed cassette, right on the spot.
and plug the U-matic into any Existing tape. Film. Anything
TV set. At once, your program you can see or hear.
appears on the screen. You can also buy or rent pre¬
The uses of this little machine programmed cassettes.
boggle the mind. It could, for On hundreds of subjects, from
instance, solve one of the biggest riot control to golf technique.
problems in the conquest of Perhaps, some day, there'll be a
cancer. U-matic in every living room.
Getting new developments out But right now, as fast as Sony
to doctors—fast. can turn them out, these little
Today, 1 out of 3 cancer patients machines head for laboratories,
is saved. It could be 1 out of 2, schoolrooms, conference rooms,
if doctors just had access to all showrooms and factories.
the present knowledge. Already, by the thousands, they
With this little machine, they can. are changing our world.
Suppose a cancer specialist has
some valid success with a new
form of treatment.
THE SONY
He doesn't wait to present a
paper at some future medical
U-MATIC
color videocassette system
convention.
Right then and there, he records
For more information, write Sony Corporation of America,Video Products Dept., 47-47 Van Dam St., Long Island City, N Y. 11101

"Perhaps some day, there’ll be a U-matic in every living room."

Before that time comes, however, a lot of pioneering advertising
will be needed to explain just what a videocassette is, how it works,
how it can change the life style of the user. Expect to see much
more pioneering advertising in this vein.
 1972 Saab 99E, 4-door.Model.1972 Audi 100 LS, 4-door
4 cylinders, in-line, water-cooled Engine Design 4 cylinders, in-line, water-cooled
Yes.Overhead Cam.No
95 hp (SAE) at 5200 rpm.Maximum Engine Output.90 hp (SAE) at 5200 rpm
113.1 cubic inches.Displacement.114.2 cubic inches
Yes.Electronic Fuel Injection.No
4-speed manuaI/3-speed automatic.Gearbox ... 4-speed manual/3-speed automatic
OPTIONAL optional
Yes.Front Wheel Drive Yes
0 to 60 in 12.5 seconds.Acceleration.0 to 60 in 12.7 seconds
197 feet.Stopping Distance Maximum Load at 60 mph. 222 feet
99 mph.Top Speed.105 mph
97.4 inches.Wheelbase.105.3 inches
172 inches.Overall Length.182.6 inches
66.5 inches.Overall Width.68.1 inches
34 feet.Tlirning Circle Diameter..36.7 feet
3.5.Steering Wheel Turns, Lock to Lock.3.94
23.3 cubic feet.Trunk Space.23 cubic feet
2550 lbs..Curb Weight. 2467 lbs.
Yes.Electrically Heated Driver’s Seat.No
Yes.Heating Controls for Rear Seat Passengers.No
Yes.Fold-down Rear Seat.No
Yes.Impact Absorbing Bumpers.No
Yes.Rack and Pinion Steering.Yes
Yes.Disc Brakes On All Four Wheels.No
Yes.Dual-Diagonal Braking System.No
Between rear wheels.Fuel Tank Location Behind rear wheels
1 year/unlimited mileage.Factory Warranty.2 years/24,000 miles
$3,795.Base Price $3,855

Before you buy theirs, drive ours. Saab 99E. All information compiled from manufacturers own printed material w herein it states, all specifications subject to change without notice.
Prices listed exclude dealer preparation, transportation, state and local taxes if anv. For the name and address of the dealer nearest you. call 800-243-6000 toll free. In Connecticut, call 1-800-882-6500.

Advertising in the Competitive Stage

Here the specifications of the Saab and the Audi are directly compared
by the makers of the Saab, to show its advantages over the competitive
car.

82
 Although the music box and color television were over half a century 83
The
apart, and although the advertising techniques of their day were worlds apart, Advertising
yet both products attacked their common problem the same way: "Add one S piral

more source of delight" . . . "rarely in a lifetime a thrill like this." These

themes, of new satisfactions in life that are now attainable, are recurrent in
the pioneering advertising of new types of products.
By new types of products, we refer to those that represent a technical
breakthrough leading to innovations, such as were Xerox reproduction, Wan-
kel engines, one-piece disposable diapers, video telephones, video cassettes;
also products that apply a new principle or technique to existing types of
goods, such as transistorized products, freeze-dried coffee, tuning-fork electric
watches. These are more than minor model improvements; each called for a
new set of tools and dies and production facilities—and pioneering advertising.

The Competitive Stage

By the time the public accepts the idea of using the new category of
product, competitors undoubtedly will have sprung up. When the public no
longer asks, "What’s that product for?" but rather, "Which make shall I
buy?" the product enters the competitive stage. We speak of the advertising
for a product in the competitive stage as competitive advertising. (This is a
restrictive meaning of that term, not to be confused with the looser usage that
holds that all advertisements are competitive with each other.)
Most products in everyday use are in the competitive stage: cars, tires,
detergents, toothpaste, cereals, razor blades, soft drinks, shampoos. The pur¬
pose of advertising in the competitive stage is to show how the brand being
advertised will satisfy the buyer better than will other brands, usually because
of its unique features or differentials.

The advertising may do so by direct comparison with other brands:

Tasters Choice makes Our competition

fresh coffee in seconds is still boiling
-Tasters Choice Freeze-dried Coffee

The $3,900 Audi has the same steering system as the $38,400 Ferrari
-Audi Car

The advertising may stress its special advantages, as reported in these head¬
lines:

Toro mows more safely

—Rear safety shield —Deflector bar
—Blade guard —Safety stop switch
-Toro mowers
 84 The quiet one. It doesn’t whoosh. It doesn’t whine. It whispers.
Planning -Kodak Carousel Projector
the
Advertising ]\jone 0f these advertisements tells you why you should use its type of product;
that is taken for granted. But each sets out to tell you why you should select
that particular brand from among the others in its field.

General Electric Ranges with Total-Clean Ovens

clean parts ol an oven others expect you to dean.

All ovens that claimed to clean

themselves aren’t created equal.
What’s the difference? One works
by heat. While the other, called
“continuous cleaning’,’ depends upon
a dark-colored porous enamel. This
porous surface is designed to soak
up splatter and grease as you use
the oven. But since many parts of
the oven can’t be made with this
porous finish, you’re expected to
lend a hand.
The General Electric Total-Clean
self-cleaning system is completely
automatic. It cleans the entire oven
interior. All you do is latch the door The J757 is a free-standing 30" Harvest, Avocado or White.
and set the control. Spills, greasy model. In addition to the P-7 Total- P-7 top and bottom wall ovens
spots and oven soil are decomposed Clean Oven, you get a solid-state The JK29 is a 27" built-in double¬
by the heat. General Electric oven temperature control, no-drip oven with two Total-Clean Ovens.
pioneered the Pyrolytic self-cleaning cook-top, with Sensi-Temp automatic Other features: dependable solid-
oven, so it’s probably no surprise surface unit and griddle, automatic state oven temperature control, pic¬
that we have the largest selection rotisserie, meat thermometer, in¬ ture window door in both ovens, easy-
of Total-Clean Ovens. finite heat surface units and picture set oven timer, rotisserie, and auto¬
P-7 plus double ovens matic meat thermometer.
The J797 Americana? The Counter top surface units
lower oven has the P-7® Total- with matching exhaust hoods
Clean System. Removable are available. All in Harvest,
panels and shelves in the Avocado or White.
upper oven can be cleaned in Customer Care Service
the P-7 Lower oven. Other Everywhere.
features include: dependable This feature
solid-state oven temperature goes with every
control, Sensi-Temp'" auto¬ P-7 Total-Clean
matic surface unit with range we sell.
griddle, automatic rotisserie, This is our pledge: that
meat thermometer, infinite wherever you are or go you’ll
heat surface units, two pic¬ find an authorized GE
ture window doors. Available serviceman nearby. Should
in Harvest, Avocado or White. you ever need him.

GENERAL ELECTRIC

Advertising in the Competitive Stage

General Electric offers an automatic oven-cleaning system, which

it calls Total Clean, as the distinctive advantage for selecting
this oven.
 HOMEIITE
JUST MADE CUTTING
TWICE AS EASY!
Introducing the only chain saw with Twin Trigger™

■j Front trigger gives more control on tricky angles. Rear trigger makes faster work of cutting firewood

>WffUll/flHtfim

Here's the first chain saw designed from tip to grip just
for the do-it-yourseifer—the Homelite XL-2.
Homelite’s exclusive Twin Trigger™ Dual Control System gives
you a choice of grips for safer, faster cutting.
And nobody but Homelite could pack so much performance into
barely seven pounds. There’s fingertip starting.
Rugged two-cycle engine. And, automatic chain oiling is standard—
not an expensive option.
Use the XL-2 to cut firewood trim, prune, or for almost
any outdoor construction. In just a few weekends you’li probably have
saved yourself the price.

HOMELITE® XL2 $119.95*

With Twin Trigger™
™ Trademark of Homelite •SuooiMtprf Rnlail Prira HOMFt ITF . A fmitron) DIVISION . PORT OHFSTFR NY 10573

Advertising in the Competitive Stage

This advertisement does not tell you why you should use a chain
saw; it focuses on the competitive advantage of its differential—
the Twin Trigger—as the reason you should get this particular
one.
83
 86 The Retentive Stage
Planning
the
Advertising There is a third stage through which a product might pass—the re¬
tentive stage. When a brand of product is used by a large share of the market,
the chief goal of the advertising may be to hold on to those customers. All
over the world, for example, there are signs saying Drink Coca-Cola. They
do not say what Coca-Cola is; they give no reason why you should drink it or
why Coca-Cola is better than any other drink. That advertising is addressed
to people who know Coca-Cola; the company just wants to retain its patronage
at the minimal cost per customer.

Coca-Cola in the
Retentive Stage

Not a word about the

merits of Coca-Cola in
the ad; it assumes the
readers already know
that. Its entire thrust is
to keep users from
switching to other soft
drinks.
 Retentive advertising is often referred to as "name^advertising, for 87
The
that is often its chief feature. However, retentive advertising embraces other Advertising
problems of a product in the retentive stage, such as staving off imitators—an S piral
experience faced by every highly successful advertiser. The retentive adver¬
tising will say, "Don’t be fooled by imitators,’’ or, "Get the real thing,’’ or
words to that effect. In World War II there was rationing; old customers
couldn’t get their orders filled, but companies nevertheless wanted to hold
their goodwill. Manufacturers used retentive advertising to show how people
could stretch the supply of the product. It is used today whenever a company’s
production has temporarily been curtailed, as by strikes or floods or fires.

Shift of Stage Within One Market

Since people may change their attitudes toward a product gradually, the shift
of a product from pioneering stage to competitive stage may also be gradual.
Half the space of a movie-camera ad may be pioneering, telling of the joy of
having moving pictures of children as they grow up; the other half may be
competitive, explaining the special features of this particular camera.

Product in Different Stages in Different Markets

In considering the advertising stages of a product, we think of it in terms

of specific markets. A product may be in different stages in different markets
at the same time. For example, typewriters are in the competitive stage in the
business-office market, but are largely in the pioneering stage for use by teen¬
agers.
TWA advertises its new Ambassador coaches and first-class flights to
regular air travelers (competitive advertising). In different ads, it features
its "Getaway Program’’ of comprehensive vacation plans, encouraging people
who "want to go, but there are so many reasons why you don’t’’ (pioneering
advertising). Kleenex advertising speaks of its new "Boutique tissues in a
variety of colors’’ (competitive advertising) in women’s magazines, but for
the general public reached by car cards, the message is "There’s only one
Kleenex’’ (retentive advertising). As a business grows, there is a greater need
to segment its markets, and to prepare advertising suited to the stage of each.

Product in the Competitive Stage:

Detail in Pioneering Stage

Not all products presented as "new” are new types of products. Many are
familiar products in the competitive stage, with a feature representing a new
principle that requires pioneering advertising to get acceptance. Change is a
continuum.
 The new Remington.
It’s designed for changing blades so you
don’t have to keep changing shavers.

Almost any good electric Or looking at new models.

shaver can give you a clean shave Instead, you pop in a new
when it's new. set of blades and start getting the
But the Remington kind of shaves you got when the
Lektro Blade"Shaver is shaver was new.
If you have a shaver that
designed to keep
doesn't change blades, maybe you
giving you good shaves
should change your shaver.
when it's no longer new.
No shaver is any better
than its blades, since it's the blades
themselves that do the shaving.
So we gave this new
Remington the sharpest shaver
blades we've ever made.
And we made these new
blades replaceable.
In fact, we designed a com¬
pletely new shaver around them.
With a big, Hideaway trimmer,
adjustable comfort controls, and
a slant-head design for easier, more
comfortable handling.
When you notice this new
Remington losing sharpness, in
6 months or so, the importance of
replaceable blades will come
home to you.
Because you won't have REMINGTON
to start searching for a repair shop. LEKTRO BLADE SHAVER
JL
T5FERW RAf\D

Product in the Competitive Stage—Detail in the Pioneering Stage

Often a competitive product will come out with a feature so new that it re¬
quires pioneering advertising to get acceptance, as in the case of the Reming¬
ton replaceable blades.
 When Ford came out with a new station wagon tailgate, it used 89
The
pioneering advertising to introduce "something new from the Ford Motor Advertising
Company. ... A station wagon tailgate that’s a door that’s a tailgate,’’ with 5 piral
its secret of the unique feature—the Ford-developed patented hinges . . .
"doubles the pleasure of owning a wagon.” In such instances, the advertising
focuses on the product’s new feature that is in the pioneering stage; the product
continues in the competitive stage.
Before long, competitors come out with their version of that new
feature, and it becomes accepted as the standard for that type of product, as
has the tailgate door. The company must then find some other rationale for
being selected.

Difference in Policies

The stage of a product may be determined readily enough, but two advertisers
may follow different policies in interpreting the facts. The first may recog¬
nize that there is still a large public that buys neither his article nor any like
it. He will continue to stress pioneering appeals, bringing more customers into
the field, and to himself. The second advertiser will take advantage of the
pioneering work already done in creating a market, and will use competitive
advertising only, to get his brand selected.

Why Be a Pioneer?

Since the pioneering advertiser has the expense of educating the public to
the advantages of his type of product, and since he can expect others then
to take advantage of his work, he may well ask what benefits, if any, will
compensate him for his investment. In most instances he has little choice;
either he comes into the market at the outset, with pioneering efforts, or
allows someone else to step in as the first in the field. He may then have to
pay more to enter the market later, when he has to compete with the adver¬
tising and distribution of many others.
The only advantage of which a pioneering advertiser can be sure is a
time advantage; he has a head start over the followers. His name will be the
first to come to mind for that type of product. People will know his trademark
better than that of the followers; they will have more confidence in his product
because they will feel that he has had more experience with it than his com¬
petitors. He will have the choice distributors for his product.
For five years, the B. F. Goodrich Company worked to perfect the
tubeless tire, which was then a revolutionary idea. After all the expense and
travail on the part of Goodrich in producing such a tire and getting the public
 90 to accept tires without inner tubes (a radical proposal!), competitors jumped
Planning
the
into the field with their brands of tubeless tires. Goodrich sought to stop them
Advertising through patent suits—and lost! Nevertheless, the B. F. Goodrich Company
had sold over one million tubeless tires before their competitors got into the
act.1 This lead over their followers was their payback for their pioneering
effort.

Comparison of Stages

There is much less advertising of products in the pioneering stage than in

the competitive stage, because new types or categories of products, not mere
minor improvements on old ones, do not appear on the scene too often.
Most advertising is for products in the competitive stage. Often such
advertising introduces a new feature that is in the pioneering stage, and that,
for a time, gets the advertising spotlight.
The least amount of advertising is for products in the retentive stage.
This stage, however, represents a critical moment in the life cycle of a
product, when important management decisions must be made; hence it is im¬
portant to understand the retentive stage.

After the Retentive Stage?

It appears only logical that the life of a product does not end when it reaches
the retentive stage, for here it is at the very height of its popularity, where, if
allowed, it can coast along. But a business that coasts can only coast down¬
ward—deceptively slowly at first, then nose-diving suddenly as the impact of
more aggressive competition makes itself felt.
No business can rely for its continuity on old customers only. They
die off, their patterns of living change, they are lured away by the offerings of
competitors. Just when a product is enjoying its peak years of success—when
its name is the most prominent in the field—the advertising usually takes a
new turn. It shows people who are already familiar with the product new
ways of using it, and reasons for using it more often. It enters a new pioneer¬
ing stage.
The Singer Company, whose name is synonymous with sewing ma¬
chines throughout the world, is again advertising to get women to make their
own clothes, showing the ease of doing so, the money they can save, and the
creative enjoyment it affords. Reynolds, a name familiar to housewives for

1 Sidney Furst and Milton Sherman, eds., Business Decisions That Changed Our
Lives (New York: Random House, 1964), p. 147.
aluminum wrap, introduced the new idea of "Freezer-to-Table Cooking” and 91
The
advertised "How to cook frozen meat, fish, poultry, without thawing.” Advertising
Johnson & Johnson, whose Band-Aid bandages can be found in medicine S piral

chests throughout the country, is continuously advertising a warning to watch

out for small scratches, as they may lead to infections, in order to get the
bandages out of the medicine chest more often.
In time, other advertisers may move into the new market created
by the pioneer. Other sewing-machine companies are going after the new
sewing-machine prospects generated by Singer. Besides Johnson & Johnson’s
Band-Aids, other adhesive bandages are advertised to the public that is aware
of such bandages—and the product enters a new competitive stage in that
market.

The product does not actually return to the point at which it first
started its career, however; instead, the market stretches out to include the
additional buyers now embraced (Chart B). After it has gone through the
stages in this field, the product may repeat the movement in other fields, or
with new generations, with every turn enlarging the total market of buyers,
the process represented by a spiral (Chart C).

Management Decisions at the Retentive Stage

As a product approaches the retentive stage, management must make some

important marketing decisions.

—Can it make some significant improvement in the present product

so that it virtually represents a new type of product? That s
what Gillette did when it came out with its continuous-band-
shave razor.
 How do you put fresh
tomato flavor into a meatloaf,
a stew, a sauce, a casserole
or a soup bowl?
With CampbeflsTomato Soup.
Campbell’s Tomato Soup makes it easy to enjoy
fresh tomato flavor all year round. Our tomatoes
are sun-ripened on the vine. And that sunny
flavor, seasoned with a touch of real butter, has
made Campbell’s Tomato Soup America’s
favorite. Great as soup! And great for cooking,
too! Campbell’s Tomato gives you fresh tomato
flavor in every can and an easy-to-prepare,
kitchen-tested recipe on every label.

Mm! Mm!
Good!

Yankee Noodle Bake: For a

terrific casserole, begin by Tomato Meatloaf: When you
browning 8 frankfurters make your favorite meatloaf
(sliced) with Vi cup chopped (l'j to 2-lb. size! substitute
onion. Combine in lC-qt. one half cup undiluted Campbell’s
casserole with 2 cups cooked
Tomato Soup for the liquid you
medium noodles, 1 can
normally use. Bake as usual. Pour
(10% oz.) Campbell’s Tomato remaining soup over meatloaf
Soup, M* cup water, 1 tsp.
for last 5 min. of baking.
prepared mustard. Top with
Vt cup buttered bread crumbs. Souper Stew: For a great new
Bake at 350°F. for 30 min.
flavor, add Campbell’s Tomato Soup
4 servings. mi mui i
to stews—beef, chicken or lamb.

Instant Sauce: Want a delicious

pour-over sauce? Check the back
of Campbell's Tomato Soup label
for the recipe. Add parsley,
if desired.

Campbell’s Soup in New Pioneering Stage

The name "Campbell’s” is almost synonymous with soup.

Yet the company continues advertising in the new pioneering
stage showing other uses of Campbell’s soup. Other adver¬
tisements encourage the more frequent serving of soup, as
something hot to have in the summer with cold sandwiches.
 —The company may come out with a related item—the first step in 93
Planning
creating an expanded line? The makers of Clairol first came out the
with a hair rinse, then with other hair preparations, then with an Advertising
ever-expanding line of cosmetics. First there was the Frigidaire
refrigerator; today there are also the Frigidaire washer, Frigid¬
aire dryer, Frigidaire food-waste disposal, Frigidaire air-
conditioners, among their other products. Each shares the
prestige of the original product in the line, as well as sharing
the company’s production resources and marketing skills.
—The company may buy another concern and put all the products
under one corporate umbrella. (The handling of a company with
diversified products is a separate decision of corporate identity,
which we discuss in the trademark chapter.)
—Sometimes a company is a leader in a field, but the whole field
is shrinking. That’s what happened to Ronson, famed for its
table cigarette lighters. The solution of that company was to
reach out for other products they could make, with their tech¬
nical competence. In one full-page ad they subsequently featured
the Ronson broiler oven, the Ronson blender, the Ronson hair
dryer, and the Ronson electric knife.

These are some typical alternatives. There are, of course, others.

Thus we see that the life cycle of a product may be affected by many
conditions. If, however, the product is to continue to be marketed, its own
advertising stage must be identified before its advertising goals are set.

Using the Advertising Spiral to Set Policy

The advertising spiral is a graphic representation of the advertising stages of

products. It provides a point of reference for determining which stage or
stages a product has reached at a given time with a given audience, and what
the thrust of the advertising message should be. In many respects, the adver¬
tising spiral is the advertising parallel to the life cycle of a product, except that
it shows where the product can go when it reaches a new high level of success.
A prodfict may not necessarily go through all these stages. It may
begin in the competitive stage, and spend its life fighting for a larger share
of an expanding market. But the advertising spiral forces one to answer the
important questions: In which stage is the product in a given market? Do we
need to do pioneering work to create a market? Competitive work to get a
larger share of the existing market? What proportion pioneering? What pro¬
portion competitive? As we approach the retentive stage, is it time to see
whether we can expand the total market for this product, or come out with a
new product? These are not just advertising decisions, but marketing decisions.
 The Singer Spiral Saga

Soothing toGZQatch....
The Singer Electric
but the flowing <£eam Sewing Machine

RINGER, always the pioneer, has created a new in the Pioneering Stage
& sewing machine. You sit at ease before it, press
a lever ever so gently with the knee, and while you The electric sewing machine was in¬
merely guide your material, you watch a perfect seam
flow forth, ruffles form like gathering foam or a tiny troduced by Singer with this adver¬
hem fall into place.
tisement of 1927 in true pioneering
Tucking, shirring, binding, all those deft details of
trimming and decoration, you do more perfectly than fashion—explaining the "versatile
by hand—and in a tenth the time. Such is the versa¬
tile magic of this new Singer Electric that its very
magic" of this new way of sewing.
presence is a temptation to sew, and the creation of
lovely things becomes a fascinating joy.
There is an easy way to prove to yourself what a
modern Singer will do. The nearest Singer Shop will
gladly send one to your home that you can use for
thirty days, in doing your own sewing. You may have
your choice of the widest variety of models—electric,
treadle and hand machines. Any one of them may
be yours on a convenient plan by which you will
receive a generous allowance for your present machine,
and your new Singer will pay for itself as you save.
The Famous Singer “S”
is one of the oldest of trade-marks.
You will find it on the windows of
“Short Cuts to Home Sewing”—Jree
6,000 Singer Shops, in every city in
the xvorId. It is the identifying mark This interesting practical book shows you how to
of sewing machines of enduring save time in a hundred ways on your sewing machine
quality. It means, too, that every howto do all the modish new details of trimming.
Singer Shop is ready always with
instruction, repairs, supplies and It will help with your sewing no matter what make
courteous expert service. of machine you may have—or even though you have
When the Singer representative comes none now. The book is free. Simply phone or call at
to your home let him tell you about the nearest Singer Shop (see telephone directory) or
this service Singer maintains in your
neighborhood, wherever you live. send for a copy by mail, postpaid.

Singer Sewing Machine Company, Dept. 32A, Singer Bldg., N. Y.

SINGER
SEWING MACHINES Entire contents of this advertisement copyright 1926-7 by The Singer Manufacturing Co.
 The Singer Electric Sewing Machine in the Competitive Stage

As electric sewing machines became widely accepted, with different brands

on the market, Singer came out over the years with improvements, providing
product differentials to give it an advantage over competitors, as exemplified
by this advertisement of the late 1960s.

Dream Machine

The new

zig-zag sewing machine

by SINGER

Here’s the latest of the fabulous

Touch & Sew sewing machines. With
so many new features you can sew
everything you ever dreamed of—
right now.
Imagine—threading a needle
with a push-button!
Basting on a sewing machine—
at last!
Of course, this newest Golden
Touch & Sew machine continues to
bring you a built-in buttonholer, the
exclusive Push-Button Bobbin and
solid state speed control.
model 640
New! Speed Basting And it makes it "sew easy" to em¬
Stitch ends tedious hand¬
basting forever. Easy to sew, broider, monogram, chainstitch—
easy to pull out. sew hundreds of decorative stitches.
Try the Dream Machine today.

New! Push-Button Needle One of five new Touch St Sew

Threader ends squinting;
power-threads the needle* machines. Prices start at $149.95.

Makes all
your sewing dreams
come true.
Just set the dial and Ufl
SINGER
SINC E R
Whati nrw for tomorrow It at today!’
sew perfect buttonholes.
It’s dreamy. •A Trademark of THE SINGER COMPANY

9^
 Make the most of yourself-

Fit to Flatter— exclusive

Speed Basting gives you
stitches up to 2 inches long!
Ends tedious hand-basting.
Show-Off Buttonholes are
simple to make with the
Built-in Buttonholer. Just

Push-Button Bobbin winds right

in the machine. It’s exclusive!
So's the whole threading system
that keeps stitching smooth, even.
Happy Ending: zig-zag your way
to stronger, smoother seam
finishes with The Dream Machine.
Ideal for knits, synthetic fabrics.

make it with The Dream Machine.

Go ahead —cover yourself with glory! Discover how easy
it is to sew up the great clothes you’ve dreamed of—with
The Dream Machine. The newest Golden Touch & Sew" sewing
machine by Singer. This fabulous zig-zag has all the
special features we’ve shown here—and lots more!
Sew on it today at the Singer Center near you.
See all 5 Touch & Sew machines. There’s one
priced at only $149.95. Other Singer sewing
machinesare priced from $69.95 at your Singer Center.
And Singer has a credit plan to fit your budget.

What’s new for tomorrow

is at SINGER today!'
*A Trademark of THE SINGER COMPANY

The Singer Sewing Machine in a New Pioneering Stage

—the Advertising Answer

Instead of basking in the retentive stage with something like "Singer

for Sewing," Singer went off in two directions: From the advertising
viewpoint, it went into a new pioneering stage, encouraging women
to sew their own clothes—"Discover how easy it is to sew up the
great clothes you’ve dreamed of."

96
Singer off on a New Product Direction—the Marketing Answer

Now Singer is "riding

on its name” by also
going into the vacuum
cleaner business

Give the Stylist* zig-zag portable

sewing machine by Singer with
case. Makes buttonholes and
embroiders $139.95.

Choose a Singer Vacuum;Golden

Power Master upright $89.95.
Give OneTouch Sewing on the
Golden Glide' canister $99.95.
newest Golden Touch & Sew"
Power Sweeper $29.95.
sewing machine by Singer in
P37/575
the handsome Bakersfield desk.
Features the exclusive Push-
Button Bobbin, a built-in button-
holer, plus a choice of nine
stretch stitches.
Colorful Array of sewing boxes
and baskets at Singer from
$1.49 to $14.98.

Give the Little Touch & Sew

sewing machine by Singer to
the little girl on your list; really
Give the Fashion Mate' sews lockstitches.$16.95.
zig-zag portable sewing machine
by Singer with case $88.00.

FREE INSTRUCTIONS show you howto use your new Sing_er sewing machine
FREE GIFT WRAP all bright and be-nbboned - to save you Christmas tie-ups.
FREE DELIVERY anywhere in the U.S A. including Alaska and Hawaii
GIVE A SINGER GIFT CERTIFICATE to the friend who's hard to shop for

The Singer 1 to 36 Credit Plan helps you keep Christmas

within your budget... or you may defer monthly payments till
Feb , 1971 Or - use the Singer Lay-Away Plan - deposit
holds any item till Dec. 19

Get the SINGER spirit!

For address of the Singer Sewing Center nearest you. see White Pages under SINGER COMPANY •x^o.th.s.^com^ |

97
 98 Review Questions
Planning
the
Advertising 1. What is the "advertising spiral"? 6. Why is the retentive stage a critical
one for a product?
2. Can you give an example of a
product chiefly in (a) the pioneering 7. Cite several examples of important
stage, (b) the competitive stage, marketing and advertising decisions
(c) the retentive stage, (d) a new that might be considered as a prod¬
pioneering stage? uct approaches the retentive stage.
3. What is the essence of the adver¬ 8. Can you explain why some products
tising message in presenting a that are new do not begin in the
product at each stage? What con¬ pioneering stage ?
cepts must be stressed?
9. Why is it important for an adver¬
4. Can you cite two situations where a tiser to decide the stage of the spiral
product’s advertising can be at more his product is in?
than one stage at a time?
10. Different advertisers in the same
5. What are the major advantages and product category may see their prod¬
the major risks of doing the pioneer¬ ucts at different stages of the spiral.
ing advertising for a product? Explain how this can happen.

Reading Suggestions

Brink, Edward L., and William T. Levitt, Theodore, "Exploit the Product
Kelley, The Management of Promo¬ Life Cycle," Harvard Business Re¬
tion, Chapter 7. Englewood Cliffs, view, November-December 1965, p
N.J.: Prentice-Hall, Inc., 1963. Ex¬ 8 Iff.
cerpted in Kleppner and Settel, Ex¬ Wasson, Chester R., Product Manage¬
ploring Advertising, p. 70.
ment: Product Life Cycles and Com¬
Durkee, Burton R., How to Make Ad¬ petitive Marketing Strategy. St.
vertising Work. New York: McGraw- Charles, Ill.: Challenge Books, 1971.
Hill Book Company, 1967.
Weilbacher, W. M., "What Happens to
Forrester, Jay W., "Advertising: A Advertisements When They Grow
Problem in Industrial Dynamics,” Up," Public Opinion Quarterly, Sum¬
Harvard Business Review, March- mer 1970, pp. 216-223.
April 1959, pp. 100-110. Also in
Kleppner and Settel, Exploring Ad¬
vertising, p. 47.
 5
Target Marketing

Procter & Gamble has long been well known for its marketing capabili¬
ties in the detergent and food-products fields. In the late 1950’s, P & G en¬
tered the paper-products field. By the early 1970’s, P & G’s Bounty paper
towels and Charmin toilet tissues were market leaders, and Pampers disposable
diapers had captured the bulk of that product’s sales.
P & G’s ability to market new products effectively to the housewife
was again a dominant factor in its success. The company was demonstrating
not so much its skill in manufacturing paper-goods as its skill in creating
products for a market, and in creating markets for a product. This approach
to advertising via marketing is the subject of the present chapter.

What Is a Product?

To those who are buying it, any product represents a bundle of satisfactions.
Some of these satisfactions are purely functional—a car is for getting places,
a watch is for telling time, a camera is for taking pictures. Some of the satis¬
factions are psychological—a car may be for showing what a sporty person the
owner is, a watch may represent a beautiful piece of jewelry, a camera may be
used to show how up to date the owner is. Different people have different ideas
about the satisfactions that are important to each of them when they consider
a product. Although some may want a sporty car, others may want a family
car. Some men want transportation at as low a price as possible, and others
may want all the luxury in driving that money can buy.
Products are designed with satisfactions to match the interests of a
particular group of consumers. That is why every car company makes a wide
range of cars, each with many variations. Within the product class of cameras,
there is equipment that is simple to operate and geared to nonexperts, and
there is also sophisticated, controls-laden equipment for the serious pho¬
tographer. (Note that cameras are not strictly divided by price, since some
simple equipment can be more expensive than some of the complex devices.)
Yankelovich defined three groups of consumers in the watch field
on the basis of values each sought from the product. These are:

99
 100 1. People who want to pay the lowest possible price for any watch
Planning
the that works reasonably well. If the watch fails after six months or a
Advertising year, they will throw it out and replace it.
2. People who value watches for their long life, good workmanship,
good material, and good styling. They are willing to pay for these
product qualities.
3. People who look not only for useful product features but also for
meaningful emotional qualities. The most important consideration
in this segment is that the watch should suitably symbolize an im¬
portant occasion. Consequently, fine styling, a well-known brand
name, the recommendation of the jeweler, and a gold or diamond
case are highly valued.1

Hence, when we look at a can of coffee or a Cadillac car, for instance,

we do not see just a tin can holding coffee, or an expensive car with a big
wheeibase. W^e try to picture the kind of person enjoying a mildly stimulating
and warming drink, or we try to picture the owner of the Cadillac. Target
marketing means focusing on groups of people who seek similar satisfactions
from a product.

Changing product styles. Few products are static in the wake of

product development. For generations after the fountain pen had become a
standard writing instrument, no up-and-coming young man would be without
his Waterman pen. But after World War II, a new writing marvel appeared
on the scene—the ballpoint pen, which was advertised as a pen that would
write under water (even though no one explained why you should want to
write under water). People stood on line to buy them at five dollars. By the
I960 s, prices of ballpoint pens had come way down, and they were being
sold more like long-lasting pencils than as pens. But meanwhile, fountain
pens had entered a new life; they were offered as luxury items, often in gold
and set in expensive desk stands, providing a different set of consumer satis¬
factions than those of the ballpoints. A pen is not just a pen; markets change
with the product, and products change with the market.

What Is a Market?

Almost all advertising and marketing men could answer this question,’’ said
Sissors, and yet many would give different answers to the same question.”
He then offered eight definitions commonly used.2

1 Daniel Yankelovich, "New Criteria for Market Segmentation,” Harvard Business

Review, March-April 1964, p. 133.
-Jack Z. Sissors, What Makes a Market,” Journal of Marketing, July 1966, p. 17.
 Lest we be accused of making life still more complicated by trying 101
Target
to combine all those eight definitions into one, or by coming out with still Marketing
another definition, we shall rephrase the question: "What is the first step
in describing a market from the viewpoint of advertising?” As a starter, we
view a market as a group of people (1) who can be identified by some com¬
mon characteristic, interest, or problem; (2) who could use our product to
advantage; and (3) who could afford to buy it. Examples of potential markets:
mothers of young children, teen-age girls, skiers, fathers worried about
financially protecting their families, or people suffering from corns.
We will pursue the question of defining a market throughout the
book.
The majority fallacy is a term applied to the assumption once fre¬
quently made that every product should be aimed at, and acceptable to, a
majority of all consumers. Kuehn and Day have described how successive
brands all aimed at a majority of a given market will tend to have rather
similar characteristics, and will neglect an opportunity to serve consumer
minorities. They offer an illustration from the field of chocolate cake mixes.
Good-sized minorities would make a light-chocolate cake and a very dark
chocolate cake, respectively, their first choice over the competitive medium-
chocolate cakes, even though the latter would be the majority choice of the
whole market. So while several initial entrants into the field would do best
to market a medium-chocolate mix to appeal to the broadest group of con
sumers, later entrants might well gain a larger market share by gaining the
first-choice preference among a minority of the market.3

What Is the Competition?

We speak of competition in the broadest sense, to include all forces that are
inhibiting the sales of a product. They may be products in the same subclass
as your product, or the same product class, or forces outside the category of
your product.
Does the "small cigar” primarily compete with other brands of small
cigars (subclass), with full-sized cigars (product class), or with cigarettes
(beyond product class) ?
Does instant iced tea compete with non-instant iced tea, iced coffee,
or soda pop? With hot tea or coffee? With beer? With alcoholic beverages?
In short, is the competitive array that of tea, of cold nonalcoholic beverages,
or of refreshment generally?
The competitive array can widen even further as the basic price of the
product increases. For example, in terms of the suburbanite s family budget,

3 Alfred A. Kuehn and Ralph A. Day, "Strategy of Product Quality,” Harvard

Business Review, November-December 1962, pp. lOOff.
 102 the real competition for a brand of riding mower (garden tractor) may well
Planning
the not be other brands. Rather, for such a purchase, involving over $1,500 in
Advertising some instances, the competition could be central air conditioning or a family
vacation.
The immediate competition for a product already in the market is
that of other products in its class. How does this product compare with the
others in differentials? In total sale? In share of the market? In the sales of
this particular brand? What do consumers like and dislike about the products
being offered, including the one under consideration?

Market Segmentation

In speaking of marketing trends in the twentieth century, Frank, Massy and

Wind say:

. . . Improvement in transportation and communication made it pos¬

sible to define markets broadly, often in terms of national boundaries
and beyond. Thus the concept of the mass market emerged and came
to dominate much business thought. By standardizing products and
selling them to a broad range of customer types, it was possible to
reduce production costs. ... But the last twenty years have seen at
least a partial reversal of these trends. For many products the mass
market has become larger than necessary to achieve economies of
scale. Improved production techniques have made diversity of product
offerings technically possible. . . . Consumers were willing to em¬
brace standardized products only as the costs of diversity remained
high.* 4

As the production "costs of diversity" have come down, the variety

of new products has proliferated, each for a special segment of the popula¬
tion. Market segmentation is the process of focusing market effort on the group
most interested in the particular service or values a product offers. Its premise
is that an effort focused on a selective market may prove more fruitful than a
broad appeal to a broad market. The fact that a market is selective does not
preclude it from being, or becoming, a very large one.
The idea behind market segmentation is not new. In fact, the first
person to discover that mass production alone was not the answer to marketing
problems was the man who developed mass production—Henry Ford.5 For

Ronald E. Frank, William F. M. Massy, and Yoram Wind, Market Segmentation

(Englewood Cliffs, N.J.: Prentice-Hall, Inc., 1972), p. 4.
5 AH cars ma<Ie at the beginning of the century when Ford began were costly to
make. Fords were, too. They were considered "rich men’s toys.” Ford perceived that there
was no future in making automobiles for that market. The industry would have to sell cars
to the masses, and it never could unless the price came down. It was this marketing perception
that launched Ford into his creation of mass-production techniques.
many years he used his new mass-production techniques with spectacular suc¬ 103
Target
cess, producing and selling millions of his low-priced, completely standardized Marketing
Model T cars—all one model, all one color (black). Any change, he felt,
would increase the cost of the car, with consequent loss of buyers. Mean¬
while, others came out with different model cars in different colors to meet
the varying tastes of the public. The Ford Motor Company went through a
business crisis before it recognized that people have varying needs and tastes,
and are willing to pay for them. Now every car company offers such a range
of models and colors that cars are almost custom-made.
Market segmentation has loomed into importance in recent years, not
because industry is producing such huge volumes of goods, but because of
diversity. It has also been fostered by the increased purchasing power of many
who can now afford to choose from the greater variety of products available.
Another great influence has been the pressure on business concerns to come
out with new products to spur the company rate of growth, and to offset
products whose peak of sales has passed. (As this is being written, Advertising
Age reports that the Ralston Purina Company is going to market a line of
health foods—the first major company to do so.)6
Segmentation can be brought about by creating a product variation
to meet the needs of a focused market, or by positioning the product through
an appeal to attract a focused market, or by both.

Creating a product for focused interests. One of the principal ways

that marketers attract a focused interest group is through variations in the
conventional product. These variations are based on research, observation, or
intuition that suggests a large enough submarket with an interest in the product
offering. Thus, in refrigerators, the development of small apartment re¬
frigerators and smaller office refrigerators, as well as small decorator-designed
refrigerators for the living room or family room, came about because of a
growing group of consumers interested in, and believing they would like, such
a product variation. Similarly, beers for those who prefer a lighter or stronger
taste, facial and toilet tissues in decorator colors or floral designs all these
are product variations based on the existence of some prospectively interested
and large enough group of consumers.
To meet the needs of the one-person household, foods are being
packed in small-size packages; Hunt’s Reddi-Bacon, for example, can be
cooked in a toaster without any mess, and comes four slices to the packet,
four packets to the box. On the other hand, the Swanson Frozen Foods divi¬
sion of the Campbell Soup Company offers the Hungry Man’s Dinner, which
includes a second helping of meat. It was created as a result of research show
ing that many men felt that frozen-food dinners did not provide big enough
portions. Crest toothpaste was the first to be recognized by the American

6 Advertising Age, July 21, 1972, p. 2.

Like regular
r*
cream cheese,
kit this one's

Products Created for

Market Segments

Philadelphia Imitation Cream Cheese was

created for those who are watching their
calories.

YouVe
otto taste it
to believe it.

The Hamburger Helper was packaged for

a family of five. Each of these products is
targeted at a special group.
TO 1 IB

DOODLE omm/t

Help for five

One pan, one pound of hamburger and one package of Hamburger Helper'
change hamburger into a real dinner dish for a family of five.
Dental Association for using stannous fluoride, and has been stressing its 103
Target
ability to prevent cavities, while conversely, Ultra-Brite toothpaste was formu¬ Marketing
lated primarily to help teeth look brighter. A mail-order company has built a
large national business selling wearing apparel for tall men only.
There is much segmentation in the coffee market. Regular coffee, first
of all, differs among brands in price, taste, and the way it is ground to suit
different ways of brewing it (for electric percolators, filter devices, drip pots,
and so on). Instant and freeze-dried coffees are offered for those who want
the convenience of just adding water. Then there is decaffeinated coffee, ap¬
pealing to the large group who, for health reasons, want to avoid caffeine.
Each type of coffee is designed to satisfy a different market of people who
drink coffee. The introductions of a low-acid coffee (Kava) and of a chicory-
flavored coffee (Luzianne) were both made to attract a small but steady group
of consumers.
Whit Hobbs reports an experience with the S.C. Johnson Company
(furniture wax) when the account was first assigned to his agency. The
product had clear advantages over competition, but sales had been sliding.
Instead of embarking on a campaign to stress product differentials, the agency
conducted research to find out why the sales were declining. He reports:

It wasn’t a healthy market. . . . What was the problem? The problem

was that women hated to wax their furniture. It was a chore and a
bore. They did it once or twice a month and wished it were even less
often than that. On the other hand, research pointed out that women
dust their furniture nearly every day. And this fact led to a strategic
question: What would happen if you could get that once-a-month
furniture wax onto the dust cloth?
What happened was a remarkable sales success. The creative team took
this get-it-on-the-dust-cloth creative strategy and came up with the
promise of "waxed beauty instantly as you dust." The Johnson
product, Pledge, did not merely stop the decline; it doubled the
market.7

How different interest groups of consumers in the home-gardening

market can be attracted by product variations in lawn mowers designed spe¬
cifically for them is illustrated by Boyd and Levy. They examine three major
types of gardeners—small casual, small careful, and large casual.

_The first is characterized by intermittent gardening work on a

random schedule, and interest in grass primarily for cover. This
kind of gardener is seen as wanting a lawn mower that is simple,
rugged, inexpensive, and easy to use.

7 Whit Hobbs, "Copy Strategy,” in The Management of Advertising, ed. Roger

Barton (New York: McGraw-Hill Book Company, 1970), p. 14-4.
 A Product Created Through
Positioning

—The second is characterized as working in the garden extensively

on a planned-care basis, and is seen as near-compulsive in the
desire for perfection. This gardener's interest in lawn mowers
is for special attachments and adjustable blades, for which he is
willing to pay a premium price.
—The large casual gardener is characterized as being interested in
making a big production” of his work on great sweeps of lawn.
In his mini-estate” view of his lawn, this kind of gardener wants
a big fancy lawn mower, with gadgets, and will pay a premium
for these features.8

8 Harper Boyd and Sidney Levy, "New Dimension in Consumer Analysis,” Harvard
Business Review, November-December 1963, p. 129.

106
 In many product fields today, there are so many sets of particular 107

consumer needs and interests that a single standardized product with some Marketing
appeal to many people may fare less well than, or have the market nibbled
away by, products tailored to appeal strongly to a segment of the market.

Positioning by choice of appeal. Sometimes you can position, or

reposition, a product without making any physical changes, just by changing
the advertising appeal. Kleenex tissues, as cited in an earlier chapter, came
out as a paper handkerchief, but changed its positioning to a facial tissue,
which launched a new, industry. Noxzema was repositioned from a skin
medication to a beauty treatment. It is now the largest-selling skin cream in
the world.

Segmentation—Going after Parents of Kids

Crest is directing pioneer¬

ing advertising toward par¬
ents to get their children
How to get your kids to brush.
to brush their teeth, with Truth, not tricks.
a minor competitive plug Little people are very smart people.
Smart, and curious, and enthralled with
for Crest.
the answers to“why” So, rather than offering
them money or something for each time
they brush, which doesn’t tell them
the answer to“why’’ offer them the truth.
Tell them all about their teeth
and how they’re living things (kind of like
toes, or eyes, or skin) and can be hurt.
That there are many shapes of teeth, some
for chewing, some for biting, some
for grinding.
Tell them that even though food is good
for their bodies, some food, particularly
if it’s sweet, can cause cavities if it stays
on their teeth very long. But if they bmsh
their teeth soon after eating, brush well,
up and down, back and around, they can
remove the food. And take care of those
teeth that are alive and belong to them.
Explain what cavities are.
(Holes in teeth might be enough of an
explanation.)
And by all means, let them see you
Crest fights cavities. Crest is accepted by the
brush, too. What you do is more believable
American Dental Association.*
than what you say. And, on top of all that, it tastes good.
A little help from your friends. Regular flavor tastes a little like bubble gum, and
If your kids are going to do their job mint tastes a lot like mint.
(brushing after every meal), the toothpaste Tell your kids all about their teeth and about
they use ought to do its job. And % Crest. We honestly feel
Crest with fluoride does. ■ that’s the way to get them to brush.

Fighting cavities is the whole idea behind Crest.

v-rM-Ovtly oppWd O'o* p*o<#tvr

 108 QT suntan preparation had been promoted as a suntan oil that also
Planning
the
tanned the skin indoors. But the advertising was repositioned to stress its
Advertising special cosmetic usefulness. "QT makes the imperfect tan perfect," said its
new advertising, which showed girls how QT could match up the gaps in the
tan, such as those left by strap marks from bathing suits. QT’s market share
in the field was the only one to show growth.9
Kikkoman soy sauce is best known as a special seasoning. In order to
popularize its use as a general seasoning, the maker advertised its other spe¬
cific applications, and urged housewives to make Kikkoman sauce an on-the-
table partner of salt and pepper.
Elsewhere in this book we speak of going after the younger genera¬
tion, but Johnson & Johnson reversed the play by appealing to the older
generation to use their baby powder and baby oil for themselves. "It’s not just
for baby; it’s good for adults,” with separate campaigns for men, women,
teenagers. The product remained the same; but the positioning was changed
and sales doubled.10

The Profile of the Market

We now address ourselves to the overall market for the product. First we ask,
What is the overall usage of this type of product? This might be defined in
terms of dollar sales, percentage of households who use such a product, or the
total number of units. Has the field been growing or dwindling? What is the
share of the market enjoyed by those in the business, by territories? What
change has taken place in the past few years in their ranking? What is the
chief product advantage featured by each brand?

Where are the best markets? In which territory are most products of
this type sold? For example, only 25 percent of the homes in St. Paul use
instant coffee, but 52 percent of the homes in Milwaukee do; baked beans are
almost twice as popular in Omaha (83 percent of the households are users)
as in Pensacola (42 percent). In Wichita, 34 percent of the homes use instant
tea, but in Duluth-Superior, only 7 percent do; 66 percent of the households
in Indianapolis have electric shavers, but only 34 percent of those in West
Palm Beach do.11
Another breakdown used is by location in terms of metropolitan cen¬
ter city, metropolitan suburb, and non-metropolitan territory.

9 Advertising Age, November 18, 1971, p. 3.

10 Ihid. August 14, 1972, p. 3.
11 19th Annual Consumer Consolidated Analysis, 1964, published by 13 news¬
papers, including the Milwaukee Journal, 1964.
Recommended Standard Breakdowns For Demographic Characteristics C Education: Grade school or less
In Surveys of Consumer Media Audiences (grades 1-8)
Some high school
I. DATA FOR Additional Data Graduated high school
HOUSEHOLDS: Minimum Basic Data Highly Desired (grades 9-12)
Some college
A. County Size: A County Size Graduated college
B County Size
(see Note 1) C County Size D Marital Status: Married
D County Size Single
Widowed
6. Geographic Area: Metropolitan Area Urban Divorced
Non Metropolitan Area Urbanized Areas
(see Notes 2 & 3) Farm Centrol Cities E Occupation: Professional, Semi-
Non Farm Urban fringe Professional
Other urban Proprietor, Manoger,
Places of 10,000 or Official
more Clerical, Sales
Places of 2,500 to Craftsman, Foreman,
10,000 Service Worker
Rural places of 1,000 Operative, Non-Farm
to 2,500 Laborer
Other rural Farmer, Farm Laborer
Retired
Metropolitan Area: Student
Unemployed
1,000,000 and over
500,000 - 999,999 F. Individual Data on individual posses¬
250,000 - 499,999 Possessions: sions or purchases will pre¬
100,000 - 249,999 sumably be governed by
50,000- 99,999 the medium's particular
selling needs.
C. Geographic Region: New England North East
Metro New York North Central
(see Notes 4 & 5) Mid Atlantic South
East Central West III. DATA FOR Additional Data
Metro Chicago HOUSEHOLD HEADS: Minimum Basic Data Highly Desired
West Centrol
South East A Sex: Male
South West Female
Pacific B. Age: 34 and younger 18-24
Youngest Child 12-17 35-49 25-34
D. Ages of Children: No Child Under 18
Youngest Child 6-11 50-64
Youngest Child 6-17
Youngest Child 2-5 65 and older
Youngest Child
Under 6 Youngest Child under 2 C. Education: Grade school or less
(grades 1-8)
E. Family Size: 1 or 2 members
Some high school
3 or 4 members
Graduated high school
5 or more members
(grades 9-12)
F. Family Income: Under $5,000. Under $3,000. Some college
$5,000 - 7,999. $ 3,000-4,999. Graduated college
$8,000 - 9,999. D. Occupation: Professional, Semi-
Over $10,000. $10,000-14,999.
Professional
$15,000-24,999.
Proprietor, Manager,
$25,000 and over
Official
G Home Residence Five Years Prior Clerical, Sales
Ownership: Own home to Survey Date Craftsman, Foreman,
Rent home Lived in same house Service Worker
Lived in different house Operative, Non-Farm
In same county Laborer
In different county Farmer, Farm Laborer
Retired
H Home Student
Characteristic: Single family Unemployed
dwelling unit
Multiple family
dwelling unit IV. DATA FOR Additional Data
HOUSEWIVES: Minimum Basic Data Highly Desired
I Race: White
A Age: 34 and younger 18-24
Non-White
35-49 25-34
J Household 50-64
Possessions: Data on household posses-, 65 and over
sions or purchases will pre¬
B. Education: Grade school or less
sumably be governed by
(grades 1-8)
the medium's particular
Some high school
selling needs.
Graduated high school
(grades 9-12)
II. DATA FOR Additional Data Some college
INDIVIDUALS: Minimum Basic Data Highly Desired Graduated college
A Age: Under 6
C. Employment: Not employed outside
6-11
home
12-17 18-24 Employed outside home
18-34 25-34 Employed Full Time
35-49
(30 hours or more
50-64
per week)
65 and over
Employed Part Time
B Sex: Male (Less than 30 hours
Female per week)

Demographic breakdowns, as recommended by the American Association of Advertising Agencies, Inc.

 no Profile of the Buyer
Planning
the
Advertising When a seller meets a buyer face to face, he soon knows much about the
buyer and his family, and how they live. A national advertiser speaking to
thousands or millions of prospective buyers cannot hope to attain such a
relationship. The most he can hope to do is formulate a picture based on a
statistical average of where and how they live, their economic and social back¬
grounds, and other demographic data. A list of these significant demographic
characteristics of the buyer of a product, which each advertiser has to develop
for himself, is referred to as a buyer profile. For example, the basic facts all
advertisers want to know about the users of their products are sex and age.
An advertiser then seeks other information about the consumer, rele¬
vant to the sale of his product. If it is food, he will want to know the size of
the family. A demographic profile of heavy users of hot cereals showed them
to be young housewives, 30-39 years of age, in the upper income group, with
three or more children. For heating equipment, an advertiser will want to
know whether or not a person owns his own home. A car advertiser will want
to know which car or cars a person owns now, his approximate income, occu¬
pation, education, and size of family. In each case the advertiser has a profile
to describe the buyers of his product. This will be important to him when he
is scheduling media and determining what to say in advertisements.
The foregoing demographic breakdowns are recommended to
media in making their demographic surveys. Advertisers can then compare
their demographic profile with those of any media they are considering.

Heavy users. For any product, there will always be a small per¬
centage of users who are responsible for a vastly disproportionate share of the
product’s sales. According to Simmons, 17 percent of the total male users of
beer accounted for 48 percent of beer consumption; 13 percent of male laxa¬
tive users accounted for 59 percent of laxative consumption; among women,
22 percent use 47 percent of the cake mixes, 30 percent use 57 percent of the
peanut butter, and 26 percent use 56 percent of the instant coffee consumed.12
For the advertiser, "heavy users’’ are obviously prime prospects to try
to reach.
Psychographic characteristics. Between two groups of buyers who
have the same social and economic demographic characteristics, there will still
be a big difference in the nature and extent of their purchases. This fact has
led to an inquiry beyond demographics to try to explain the reason for such
differences, and in turn to further sharpening of the view of a buyer in terms
of psychographic characteristics—personality traits, chiefly in willingness to
try something new. The group more willing to do so is referred to as creative
consumers, in contrast to passive consumers. In connection with this study,
Demby reports:

12 Simmons Marketing Digest, W. R. Simmons & Associates, New York.

 HEAVY USERS Ill
Target
Female Heads Reflecting Household Usage Marketing

% %
Heavy User Total Total
Product Class Definition Users Usage

American cheese 1 lb+ /wk 34 64

Baby food 15+ jars/wk 33 63
Biscuit mixes 3+ pkgs/mo 27 63
Breakfast mixes 11+ glasses/wk 23 47
Butter 1 lb+ /wk 48 75
Cake mixes 4+ pkgs/mo 22 47
Catsup 2Vi bottles/mo 30 67
Cereal, cold
Unsweetened 11+ portions/wk 21 40
Presweetened 8+ portions/wk 30 55
Cereal, hot 5+ portions/wk 38 70
Colas (soft drinks)
Regular 5+ glasses/wk 45 78
Low calorie 5+ glasses/wk 37 69
Coffee
Regular ground 7+ cups avg/day 35 60
Instant 5+ cups/day 26 56
Corn snacks 8+ pkgs/mo 14 41
Crackers.
Flavored snack 4+ pkgs/mo 16 45
Other salted 5+ pkgs/mo 29 67
Flour—all-purpose 4+ bags/mo 32 68
Frosting, mixes 3+ pkgs/mo 39 71
Frozen dinners 7+ pkgs/mo 22 44
Gelatin dessert 8+ pkgs/po 21 47
Ice cream 20+ pkgs/mo 21 45
Margarine
Regular/whipped 2+ lbs/wk 21 49
Diet 1+ lb/wk 40 67
Mayonnaise 8+ jars/mo 20 51
Mayonnaise salad dressing 8+ jars/mo 18 47
Nondairy cream subs
Liquid or frozen 4+ pkgs/mo 34 71
Powder 2+ pkgs/mo 19 53
Noodles 6+ pkgs/mo 15 43
Orange juice—frozen 5+ glasses/day 25 52
Pancake/waffle mixes 2Vz+ pkgs/mo 28 63
Peanut butter 4+ jars/mo 30 57
Potatoes, instant 6+ pkgs/mo 23 61
Potato chips 8+ pkgs/mo 49 31
Pudding or pie filling 8+ pkgs/mo 39 70

Courtesy: W. B. Simmons & Associates Research, Inc. ©.

An interesting lesson in the study of the acceptance of new products

. . . those which changed a person’s life-style, and those which did
not. Those which did not change a person s life-style had a good
chance of reaching the mass market. Those which did change a per¬
son’s life-style, or cooking style, or serving style, would be more
quickly purchased by the creative consumer, those who are constantly
looking for new products.13

13 Address to the Media Research Group, American Marketing Association, at the

Americana Hotel, New York, March 17, 1970.
 112 Sources of Usage and Demographic Data
Planning
the
Advertising Advertisers and agencies making marketing and media plans rely heavily on
the syndicated services to which they subscribe for their research information
on the users of the product. The Simmons Reports, as an outstanding example,
are based on personal interviews on a year-round basis. The annual total
sample for magazines includes 27,000 interviews with 15,000 respondents,
with 12,000 supplying a full bank of marketing and behavioral information,
and 7,000 keeping two-week diary entries in the fall. Readership and viewer-
ship information is gathered for 65 magazines, as well as major TV time
periods, newspapers, and radio stations. The report gives the heavy-user
demographics for 250 different products, and compares this usage with the
audiences of different media. Such information is invaluable in media planning.
Another source of information about a market is the special surveys
made by individual media, for the purpose of providing the advertiser such
information and thus pointing up the desirability of the medium in reaching
his markets. The following profile of new small-car buyers, prepared by
U.S. News & World Report, comes from such a survey. This is followed by a
report of research made by the American Sheep Producers Council regarding
the market for lamb; the report was a basis for a campaign to encourage the
use of lamb.

PROFILE OF NEW SMALL-CAR BUYERS

The accompanying profile of 1971 new-car buyers of six small cars distributed by
U.S. manufacturers is based on responses from some 4,500 owners of these six cars to a
survey conducted by U.S. News & World, Report. (The respondents represent about 52% of
those surveyed.)
Note how the profiles differ. Cricket, for example, is stronger among those in the
35M9 age brackets, and with $10,000-$24,999 incomes. Vega is more popular with younger
car buyers (18-34 age brackets), and Hornet with those over 50. Capri, in contrast, shows up
strongest among those over $15,000 in income, with college education or beyond, and—par¬
ticularly—with one-person families. Gremlin has more appeal to those with somewhat larger
families.

New Car Buyers by Education of Household Head

Total Hornet Gremlin Colt Vega Capri Cricket

High school or less 38.1% 42.5% 41.0% 41.1% 37.2% 26.6% 42.3%
Some college 29.4 24.9 32.5 32.3 27.6 31.3 27.8
Graduated college 14.1 12.4 13.6 11.7 16.8 19.3 10.3
Postgraduate college 15.1 14.4 8.9 11.5 17.1 20.8 15.7
study
No answer/Don’t know 3.4 5.7 4.0 3.5 1.4 1.9 4.0
Total * 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

* May not add to 100.0% due to rounding.

By Age of Household Head 113
Target
Marketing
Total Hornet Gremlin Colt Vega Capri Cricket

_ .3% .1% .1%

Under 18 .1%
— —

18-24 17.1 5.9% 20.1 19.8% 19.2 21.6 15.8%

25-34 25.6 23.6 26.7 25.0 29.9 26.3 22.6

35-44 16.8 16.0 17.3 14.0 17.5 14.2 22.2

45-49 12.0 9.7 13.0 13.3 10.6 11.9 13.2

50-64 22.1 29.5 17.9 23.0 18.9 22.3 20.3
65 and over 4.4 12.7 1.8 3.5 3.4 1.8 3.3
No answer 1.9 2.6 2.8 1.3 .4 1.8 2.4
Total * 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Median age 38.7 yrs. 46.6 yrs. 35.9 yrs. 38.3 yrs. 35.3 yrs. 35.7 yrs. 39.7 yrs.

* May not add to 100.0% due to rounding.

New Car Buyers by Total Yearly Household Income

Total Hornet Gremlin Colt Vega Capri Cricket

Under $8,000 18.4% 20.9% 21.0% 23.2% 19.4% 11.5% 15.9%

$8,000-19,999 13.1 14.5 13.2 13.8 14.4 10.8 12.7
$10,000-$14,999 28.7 31.0 28.7 27.5 26.6 27.8 30.6
$15,000-$24,999 24.8 19.0 24.4 23.7 26.7 28.3 26.0
$25,000 and over 8.9 6.3 7.0 6.2 8.8 15.2 8.7
No answer/Don’t know 6.1 8.3 5.8 5.6 4.1 6.5 6.0
Total * 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Median income $12,692 $11,688 $12,252 $11,862 $12,658 $14,408 $12,994

* May not add to 100.0% due to rounding.

New Car Buyers by Size of Household

Total Hornet Gremlin Colt Vega Capri Cricket

One 10.8% 10.7% 8.2% 10.5% 12.0% 14.4% 8.1%

Two 25.5 26.9 25.5 28.1 23.6 26.1 22.5

Three 21.6 18.3 24.4 23.5 21.0 20.6 22.2

Four 20.7 20.9 22.1 19.5 21.5 19.1 21.6

Five 10.1 9.3 7.2 8.3 11.7 10.0 13.6

Six 4.1 5.2 4.3 3.7 4.2 3.6 4.1
Seven 3.1 2.8 3.4 3.4 2.8 2.7 3.3
No answer/Don’t know 4.1 5.8 3.1 3.1 3.6 4.5 4.5
Total * 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

* May not add to 100.0% due to rounding.

 114 New Car Buyers by Occupation of Household Head
Planning
the
Advertising Total Hornet Gremlin Colt Vega Capri Cricket

Professional, Technical,
Official/Proprietor 46.7% 42.1% 43.7% 41.4% 47.3% 58.5% 44.6%
Clerical/Sales 10.5 9.6 10.4 10.1 10.9 10.4 11.4
Craftsman / F oreman /
Factory worker/
Service worker/
Laborer 25.3 24.2 29.8 30.2 24.6 17.7 27.5
Retired/Unemployed 5.5 13.3 3.5 5.8 4.2 2.6 4.0
Student 2.9 1.7 2.8 2.4 4.2 3.0 3.2
Housewife (not em-
ployed outside
home) 1.3 2.3 .6 1.1 1.7 .9 1.0
Other 3.9 2.2 4.0 6.5 4.3 3.9 2.8
No answer 3.9 4.7 5.2 2.5 2.8 3.0 5.4
Total * 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

* May not add to 100.0% due to rounding.

Courtesy U.S. News & World Report, 1972.
 LAMB USE RESEARCH 115
Target
Marketing
The following research was conducted by the American Sheep Producer’s Coun¬
cil, Inc. to determine the best market for lamb. From this information, how
would you describe the best market?

More Less
Total Frequent Frequent
Users Users Users Nonusers

Classification % % % %

By region:
Mid Atl. & New Eng. 54 29 25 46
East-North Central 32 N.A. N.A. 68
West-North Central 17 7 10 83
East South Central &
S. Atl. 23 8 15 77
West-South Central 25 9 16 75
Mtn. & Pacific 52 29 23 48

By type of family:
Adults only 37 20 17 63
With children 37 16 21 63

By age:
Under 25 30 9 21 70
25-34 33 15 18 67
35-44 37 17 20 63
45+ 40 20 20 60

By income:
Under $3,000 23 11 12 77
$3,000-5,999 32 14 18 68
$6,000-9,999 42 18 24 58
$10,000+ 60 35 25 40

By location:
City center 48 27 21 52
Suburban 43 19 24 57
Nonmetropolitan 23 8 15 77

By educational level:
Grammar school 29 14 15 71
High school 36 16 20 64
College 51 26 25 49

Total respondents 37 17 20 63

Source: The American Sheep Producers Council, Inc., 'Lamb & the Consumer,” 1964.
 116
Planning
the
Advertising

The Marketing Strategy

behind French Line Advertising
A case report on positioning
by John S. Nussbaum

The S.S. France, the longest, largest ship afloat, is the flagship of the French
Line. During the summer season it is in transatlantic service, sailing between
New York and Southhampton/Le Havre. On a limited number of crossings,
it goes to Bremerhaven. In the winter it has a Caribbean cruise program from
New York, and usually has a Mediterranean cruise in the spring from Cannes.
In recent years, all transatlantic carriers have been reducing the num¬
ber of their crossings by cutting sailings in the spring and fall, and transferring
them to cruise schedules. This has eliminated the transatlantic crossings with
the lowest load factors.
Most lines have decided that they would prefer not to gamble on a
long transatlantic season (with its higher profits), and prefer to opt for a
longer cruise season, where there is a better passenger potential, even though
at a lower total profit.
Over this same period, competition has lessened as various lines have
eliminated transatlantic service completely or have gone out of business.
Today, the principal competitor crossing the Atlantic is Cunard’s
Queen Elizabeth II, and, naturally, the airlines.
In assessing the position of the French Line with the client, sales
figures were broken down geographically to determine the origins of revenue.
It was found that six territories accounted for almost 80 percent of the
passenger dollars. These were New York, Boston, Chicago, Washington,
Philadelphia, and Los Angeles—with New York by far the largest con¬
tributor, since it is the port of call.
Past experience had shown that the best travel prospects were men
and women with the demographics of higher education, upper income, and
mature age. It was decided, however, to broaden the concept of the audience
to include a slightly younger group of persons who are good cruise prospects.
Because the trend in ocean travel continues to move in the direction
of cruises (rather than straight transportation), it was decided to promote the
France as a distinctly special cruise ship—as a floating vacation resort, a dis¬
tinctively French resort—whether on the Atlantic, in the Caribbean, or in the

Courtesy: French Line. Advertising Agency, N. W. Ayer/New York. Account Execu¬

tive, John S. Nussbaum.
Mediterranean. The advertising would have to attract people to it as a very Ill
Target
special kind of vacation in itself, rather than just as transportation. Marketing
It was also decided to put the bulk of the advertising investment in
geographical areas where the revenue potential is most promising. Beyond
those markets, it was decided to use selective magazines to reach travel pros¬
pects nationally in the most efficient manner.
In newspapers, the advertisements appeared in the Sunday travel
sections. Newspapers used were the New York Times, Boston Globe, Chicago
Tribune, Washington Tost, Baltimore Sun, Philadelphia Inquirer, and Los
Angeles Times. Because of their audience characteristics, the New Yorker,
the Saturday Review, Gourmet, and Realites were used for magazine in¬
sertions.
(See layouts and ad on pages 389-392.)

Review Questions

1. Discuss how the same product can 7. What is meant by "positioning"?

have more than one set of values. Can you give examples?

2. What is meant by "the majority 8. Can you name some products which
fallacy" ? have changed their marketing ap¬
proach by re-positioning?
3. Give an example of competition
(a) within the same subclass, (b) 9. Explain what is meant by a "buyer
within a product class, and (c) be¬ profile."
yond the product class. 10. What is meant by demographic
4. "Seven-Up” advertised itself as "the data? Who gathers it and how do
Uncola.” What does this tell us advertisers use it?
about its view of its competition? 11. Discuss what an advertiser of a
5. Explain the basic premise of mar¬ particular brand of small American
ket segmentation. Discuss several cars would be looking for in The
examples. U.S. News & World Report profile
data.
6. Give examples of the two major
ways of achieving segmentation.

Reading Suggestions

Barnett, Norman L., "Beyond Market Bogart, Leo, "Youth Market Isn’t All
Segmentation," Harvard Business Re¬ That Different," Advertising Age,
view, January-February 1969, pp- April 12, 1971, p. 37ff.
152-166. Frank, Ronald E., and William F.
Barton, Roger, The Handbook of Ad¬ Massy, Market Segmentation. Engle¬
vertising Management. New York: wood Cliffs, N.J.: Prentice-Hall, Inc.,
McGraw-Hill Book Company, 1970. 1972.
 118 Gibson, D. Parke, The $30 Billion Silberman, Charles E., "Identity Crisis
Planning Negro. New York: The Macmillan in the Consumer Markets,” Fortune,
the
Company, 1969. March 1971, p. 92ff.
Advertising
Greenland, Leo, "Is This the Era of Sissors, Jack Z., "What is a Market?”
Positioning?" Advertising Age, July Journal of Marketing, July 1966.
10, 1972, p. 43ff. Also in Kleppner and Settel, Explor¬
Haley, Russell I., "Benefit Segmentation: ing Advertising, p. 187.
A Decision-oriented Research Tool," Trout, Jack, and A1 Ries, "The Position¬
]ournal of Marketing, July 1968, pp. ing Era Cometh,” a three-part series
30-35. in Advertising Age. April 24 (p.
Leezenbaum, Ralph, "The New Ameri¬ 35), May 1 (p. 51), and May 8 (p.
can Woman . . . and Marketing," 114), 1972.
Marketing/ Communications, July Twedt, Dik W., "How Important to
1970, pp. 22-28. Marketing Strategy is the Heavy
Martineau, Pierre, "Social Class and User,” Journal of Marketing, January
Spending Behavior," Journal of Mar¬ 1968, pp. 71-72.
keting, October 1958, pp. 121-130. Wasson, Chester R., "Is It Time to
Mayer, Lawrence A., "New Questions Quit Thinking of Income Classes?”
about the US Population," Fortune, Journal of Marketing, April 1969,
February 1971, p. 80ff. pp. 54-57.
Rotzoll, Kim, "The Effect of Social Ziff, Ruth, "Psychographics for Market
Stratification on Market Behavior,” Segmentation,” Journal of Advertis¬
Journal of Advertising Research, ing Research, April 1971, pp. 3-9.
March 1967, pp. 22-27. Also in
Kleppner and Settel, Exploring Ad¬
vertising, p. 81.
 Basic Media Strategy

Media strategy refers to the overall media plan for implementing the
ma^SdnJltratFgy of a company by means of advertising. We have many
media available for delivering the message—television, radio, newspapers,
magazines, outdoor signs, transportation advertising, and direct mail, among
others. In each category we have hundreds, if not thousands, of individual
media from which to select. This calls for a plan.
Advertising expenditure is often the greatest variable expense in
marketing. The media expenditure represents the largest money risk in adver¬
tising, since there can be a tremendous difference in effectiveness between
two programs. So a plan must be a composite of many factors, including the
answers to the following:

1. Whom are we trying to sell?

2. Where is the product distributed?
3. How much money is available?
4. What is the competition doing?
5. What is the nature of the copy?
6. Reach vs. frequency vs. continuity
7. What about timing?
8. Is there a tie-in with a merchandising plan?
9. What combination of media is best?

Whom Are We Trying to Sell?

The impulsive response to this question is, "Everyone!”—but that may not
be the wisest. In creating a product in the first place, the maker may have had
in mind some specific type of buyer for whom it was intended. The U.S. Time
Company decided to make a watch, not for everybody, not for those who
bought a watch as a lifelong possession or for those who planned to give it as
a gift, but for those who wanted to pay the lowest possible price for a watch
that worked reasonably well. Accordingly, the media strategy for the Timex

119
 120 watch was geared to reach as wide a nonluxury market as possible, even though
Planning
the
watches are usually regarded as luxury items. Market segmentation can begin
Advertising with the making of the product itself, as in the instance above. At other times,
it means reviewing a product’s Total market and going after different segments
of it in different ways as parts of an overall campaign.
A second approach in defining a market is to go after those consumers
who use a product in the largest quantity—the heavy users—as we discussed
in the previous chapter.

Where Is the Product Distributed?

Advertising is a part of a total marketing program that prescribes the areas

in which the product is sold. We now seek to coordinate the circulation of the
advertising with the geographical distribution of the market. Three basic
media plans are used: a local plan, a regional plan, and a national plan. There
is also a fourth plan, which we shall discuss separately—a selective plan.

Local plan. A local plan is used when the product is on sale only
in one town or community, and its immediate trading zone. This might be the
case with a new product, or when T'product lsHbeiHgTested in different and
distant markets. Furthermore, manufacturers often build their business town
by town, or city by city.
For a local plan, the criterion for selecting a medium is that its circu¬
lation be confined to the specific geographic area in which the advertiser has
distribution. This applies no matter which media are used: newspapers, spot
television and spot radio, outdoor advertising, transit advertising, or direct
mail.

Regional plan. As the sales of a product spread to larger areas, the

advertiser seeks to employ media that reach that region. He uses a regional
plan, which is a local plan grown larger. The region may cover several ad¬
joining markets, or an entire state, or several adjoining states. Regional plans
are also used when the sale of a product varies with sectional differences in
taste or local requirements. More households buy tea in New England than in
the Middle West. More blended whisky is sold in the Middle Atlantic states
than on the Pacific Coast. Most low-calorie soft drinks are sold in the North¬
east and East Central regions. Hence, an advertiser whose product reflects such
regional differences in taste will seek media whose circulation coincides with
the territories in which his product is sold. The media can include regional
editions of national magazines and regional network television and radio—in
addition to the media for a local plan.
 ADVERTISING VOLUME 1960 AND 1970 121
Basic Media
Strategy
1960 1970
%
% % Change,

Medium Millions of Total Millions of Total ’70 vs. ’60

Newspapers total $ 3,703 31.0% $ 5,745 29.3% 55.1%

national 836 7.0 1,014 5.2 21.3
local 2,867 24.0 4,731 24.1 65.0

Magazines total 941 7.9 1,323 6.7 40.6

weeklies . 525 4.4 617 3.1 17.5
women’s 184 1.5 301 1.5 63.7
monthlies 200 1.7 374 1.9 8.7
farm, national 32 0.3 31 0.2 -3.1

1,590 13.3 3,665 18.7 130.5

Television total
783 6.6 1,712 8.7 118.6
network
527 4.4 1,247 1.8 136.6
spot
281 2.3 706 3.6 151.2
local

692 5.8 1,278 6.5 84.7

Radio total
43 0.4 58 0.3 34.9
network
222 1.8 355 1.8 59.9
spot
428 3.6 865 4.4 102.1
local

Farm publications
0.3 81 u.z -11.4
(regional) 35

Total farm ._
(66) (0.6) (62) (0.4) (-6.1)
publications *

1,830 15.3 2,734 13.9 49.3

Direct mail

5.1 740 3.8 21.5

Business papers 609

1.7 234 1.2 15.3

Outdoor total 203
1.1 154 0.8 12.4
national 137
0.6 80 0.4 21.2
local 66

19.6 3,850 19.7 65.8

Miscellaneous total 2,328
11.5 2,148 11.0 56.4
national 1,368
8.1 1,702 8.7 77.2
local 960

Total:
61.1 11,485 58.6 57.3
national 7,296
38.9 8,115 41.4 75.0
local 4,636

100.0% $19,600 100.0% 64.3%

Grand Total $11,932

* Included in other media totals—not to be added.

Estimates include media and production.
Source: 1960 data: Printers’ Ink, Aug. 10, 1962
1970 data: Marketing/Communications, July, 1971.
% change: ’70 vs. ’60: Prepared for Advertising Procedure.
 122 National plan. We now jump many millions of dollars ahead to
Planning
the the point at which the product is in widespread distribution all over the
Advertising country—in every city, town, and hamleTfCoca-Cola, for example, or Colgate
toothpaste, or Chevrolet cars. Here the task is that of reaching as many differ¬
ent buyers of our product all over the country at the lowest cost per thousand
(CPM), and we embark on a national plan for using media. We can now
consider network television, network radio, and full-circulation national
magazines, along with the nationally syndicated Sunday supplements. News¬
paper, outdoor, and transit advertising are also very much in the running.

Selective plan. We now come to a fourth plan, based not on the

geographical distribution of the product, but on the speck! Jnterest of the
users of the product wherever they may happen to be—as in boating and
yachting, art, and antiques, along with other crafts and hobbies whose parti¬
sans may be scattered all over the country. The problem in such an instance
is not the cost per thousand for reaching these people, but how the greatest
number of them can be reached. The media most useful here are the magazines
published for these respective fields, direct mail, and possibly the special
sections of any Sunday paper that are devoted to such interests. Also special
radio and TV programs.
A selective plan is often combined with a geographical plan. Fq^
example, if you wanted to reach all homeowners in a certain part of the coun¬
try, you might take a sectional edition of a national shelter magazine. The
local, sectional, and national plans, along with the selective plan, provide a
good media framework within which to work. But of course, there is always
a question of money. . . .

How Much Money Is Available?

The smaller the budget, the greater the need for resourcefulness in order to
do an adequate job. The small advertiser looks for media that are not com¬
monly being used in the field. One looks for special space units. Another shops
intensively for television and radio spots off prime time. Such resourcefulness
is good at any level; it is particularly necessary for the small advertiser. (The
term small advertiser means small in comparison with others in his field.) The
larger the budget, the greater the risk in making decisions that usually entail
large investments; there is no escape from the financial day of reckoning. The
first judgment to make in connection with a budget, therefore, is to see whether
its size permits one to think in terms of the most costly media—television net¬
works and magazine color pages, for example—assuming that one would want
to consider them. Many advertisers hold that good intermedia planning calls
for doing a good job in one important medium, which becomes the primary
medium. There may be some areas in which the primary medium could use 123
Basic Media
increased frequency and support because of competitive reasons, at which Strategy
time a secondary medium may be used. A goal in selecting the secondary
medium is to create an interplay with the primary medium that will en¬
hance the impression made by each (referred to as the synergistic effect, or
2 + 2^5)? ^~

What Is the Competition Doing?

In media planning, we are very much interested in what our competition is

doing, especially if their expenditure is bigger than ours (as it usually seems).
One popular guide is not to compete with them in media that they already
dominate. Instead, it might be better to pick a medium in which you can
dominate or hold your own among the advertising of products of the same
class. There are numerous media in which your advertisement will not be
overshadowed by others in your field. However, where the campaign is based
on unusual copy that would be unique in any medium, there may be no reason
for denying the schedule to any medium, regardless of competition. Further¬
more, there may be "sleepers” among media, reaching markets that competi¬
tion has been overlooking.
The David and Goliath story has its counterpart today among those
who use the jmti-competitive-media approach. Holton C. Rush, president of
the advertising agency of Greenshaw & Rush, Inc., reports the following
experience:

When our agency started handling Omega Flour, a regional brand, we

faced strong competition from two national flours with multimedia
programs. A careful survey showed that in outdoor and in Negro
radio there was an opportunity to outadvertise our competitors. We
concentrated on those media and Omega now had more sales volume
in the market than either of the two big-name flours. Both we and the
client give primary credit to the media strategy.1

What Is the Nature of the Copy?

At times, the nature of the copy sugg.ests.tlre type of medium in which it

could best be presented. If the chief point of the advertising is to stress the
beautiful color of a fabric, that fact might point to magazines with fine color

1 Holton C. Rush, "Some Important Things I Believe a Young Account Repre¬

sentative Should Know About Media" (American Association of Advertising Agencies, Inc.,
December, 1963).
 124 work or Sunday supplements, or possibly to color television. Does the copy
planntng cajj £0f a demonstration? That would probably suggest television. Can the
Advertising message be compressed into a simple, sharp statement? Then let’s consider
radio. Can the story be communicated in five seconds? Outdoor advertising
might then be a possibility. Is it to be the announcement of a new product?
That might point to newspapers. Thus we look to the nature of the copy to
see if it suggests any particular medium, and build our schedule around that.
However, it does not necessarily follow that the advertising message of every
product is best told in only one medium.

Reach Versus Frequency Versus Continuity

Reach refers to the total number of people to whom you deliver a message;
frequency, the number of times it is delivered within a given period (usi&liy
figured on a four-week basis for ease in schedule planning); continuity refers
to the length of time a schedule runs. Only the biggest advertisers can afforcf
all three at once, and even they seek to spread their money most efficiently.
The advantage of going for reach as the prime goal is that you get a
message before the greatest number of people. A disadvantage is that you
may not have enough money to reach them impressively enough or often
enough to make a meaningful impression.
Next arises the question, How often do you have to tell people your
story to get them to act on it? We do not have enough scientific data to make
any generalizations. Admittedly, you can reach a point with an audience
when just telling the story more often in order to make customers costs more
than it is worth in terms of sales. But in mass media, the fifth impression on
one person may be the first impression on someone who has not been exposed
to that medium or program. By the law of averages, every time the advertise¬
ment appears, it reaches some people when they are ready to buy. Further¬
more, it may reach some people who had not been interested in the product
before.
The third ball in this juggling act is continuity. Among the clearest
examples of those who make this the prime factor are the companies that
engage in long-range institutional campaigns to establish favorable attitudes
toward themselves.
In the absence of more scientific data, many media directors apply
the rule for competitive products. "Match competition and then some." If
there is not enough money to match competition on a national scale, you may
be able to pick out a market where competition has spread itself thin, and out¬
shine it in that territory.
There is much research being done and to be done on the criteria for
evaluating reach, frequency, and continuity in a given situation. One such
study, by Pomerance and Zielske, reached the following conclusions:
 1. Advertising is quickly forgotten if the consumer is not continuously 125
Basic Media
exposed to it. Strategy

2. Numerous exposures are needed to impress a message upon the

memory of a large proportion of target prospects.
3. Both the number of different persons who can be made to remem¬
ber a message and the length of time it can be remembered increase
as the number of exposures is increased.
4. An intensive burst of exposures is more effective in making a
maximum number of different persons remember advertising, at
least temporarily, than spreading 13 exposures throughout the
year.
5. To achieve this same goal, fewer exposures per prospect among a
relatively large group is preferable to 13 exposures per prospect
among a smaller group.
6. In achieving this goal, dollar efficiency of advertising decreases as
additional exposures are purchased.2

We will go further into this subject in the chapters on television

and radio.

What About Timing?

A decision as to when to spend the money in advertising is one of the key

elements of media strategy. Among the chief patterns for using media, and the
reasons for them, are the following:

Seasonal program. First of all, we meet those products whose sales

have seasonal fluctuations; for instance, cough drops in the winter, suntan
lotion in the summer, and watches at graduation time and at Christmas. In
such instances, the advertising is scheduled to reflect the seasonal peaks, ap¬
pearing in concentrated dosage with the approach of the appropriate season.
The advertising usually begins ahead of the consumer buying season when
people might first begin thinking of such products.

Steady program. When the sale of a product is quite uniform

throughout the year (toothpaste, for example), the advertising could be
maintained steadily. The chief reason for not doing so might be that such
a schedule would be too thin when spread over twelve months; hence it might
be concentrated in fewer months, permitting more impressive advertising dur¬
ing that period. Other reasons for concentrating advertising are that money

2 Eugene Pomerance and Hubert Zielske, "How Frequently Should You Advertise?
Media/scope, September 1958, pp. 25-27.
 126 may be needed to meet competitive promotional efforts during the year or to
Planning
the provide for special local campaigns. The drop in reading and viewing habits
Advertising in the summer may also affect the continuity of the schedule during that season.
Many television network advertisers take a hiatus during the summer months,
returning in the fall. However, radio listening goes up then.

Pulsation. Pulsation refers to the technique of having several short

but intensive bursts of advertismgTluring ttie year, "each series of advertise--
ments lasting, for example, three weeks to three months at a time.
The process of going in and out with a schedule is also referred to
as waving. According to Herbert Zeltner:
...

Waving in this context is not normally the result of adjusting levels of

activity to seasonal activity, but rather the somewhat arbitrary building
of heavy periods of activity interspersed with hiatuses. The wave can
be only two or three weeks—or it can be for several months of inten¬
sive effort before withdrawal from activity for a more or less sustained
period.

One of the conclusions from Zeltner’s study is:

Wave scheduling is not necessarily a good thing—and of itself . . .

it represents a lesser of two evils—when a more consistent pattern of
effort is either unaffordable or may lack effectiveness.3

As an illustration of circumstances in which pulsation may be de¬

sirable, Kuehn offers the following instances:

In allocating advertising dollars to regional metropolitan markets,

planners frequently must decide whether to allocate extra funds to
some areas at the expense of others. Generally, however, they find it
difficult to temporarily withdraw funds from areas in which a brand
is doing poorly, since they see the problem as one of survival. Under
such circumstances, pulsation in advertising or promotion, coordinated
with sales-force efforts, offers better prospects of profits and gains in
distribution than a continuous dribble of advertising. In many such
cases, it would also appear desirable to withdraw funds from some
territories to concentrate on others, a result contrary to that suggested
by most advertising models. By concentrating on a few markets, a
brand frequently has a better chance of forcing distribution and in¬
creasing its overall short-term profitability, thereby obtaining the
means for subsequent investment expenditures in other territories. It

3 Herbert Zeltner, Are Waves Worthwhile?” Media/scope, November 1964,

pp. 10-18.
 can be expensive to hold one’s own in every market simply as a matter 127
Basic Media
of principle, especially if this prevents the brand [from] becoming Strategy
firmly established and profitable in any one region.4

In addition to the foregoing patterns of timing, we have the cam¬

paigns of the automobile companies, where the chief advertising effort is
concentrated at the time of the annual presentation of the new models. In
the first six weeks of the new-car introduction, 20 percent of the total annual
budget will be spent, half of that—10 percent—in the first week alone! The
timing and cadence of the advertising thus has its birth in the annual market¬
ing cycle of the product itself. In such instances, there may also be a pre¬
liminary teaser campaign to whet curiosity and excitement for the Big
Moment.

Is There a Tie-in with a Merchandising Plan?

The role of the dealer in the marketing of the product may influence the media
strategy. The advertiser may wish to run an extensive cooperative campaign
that would call for local media tie-ins (newspaper ads, television spots, radio
spots, and outdoor posters and bulletins). He may plan a coupon or sampling
campaign in different markets in connection with intensive advertising in
local media. If such plans are in the offing, provisions for them must be in
the media program.
These are among the problems that enter into the formulation of a
media program. They add up to one thing: There is great opportunity for
creative thinking in planning the use of media. And with the use of the
computer, the challenge has become even greater.

What Combination of Media Is Best?

The usual bench mark for comparing costs of comparable media is the cost
per thousand circulation, or audience. This is determined by the following
formula:

amount of money_ = ^ thousand (cpM)

number of people (in thousands)

This is a simple yardstick of costs when you are considering a choice between,
say, two alternate women’s magazines of equal editorial stature. But when you

4 Alfred A. Kuehn, "How Advertising Performance Depends on Other Marketing

Factors,” Journal of Advertising Research, II, No. 1 (March 1962), 7.
 128 expand the schedule to include many magazines or television programs or
Planning
the both, the problem of getting the best spread for your money with minimum
Advertising unplanned duplication gets a bit complicated. Fortunately, the computer is a
big help on such problems, and we move on into the world of computer
thinking.

Computer Thinking

By computer thinking, we mean the thought of the user of the computer,

not the supposed thinking of the computer itself; computer thinking is thereby
distinguished also from the incredible task of computer programming and
operation. The greatest contribution of the computer to media planning-
even to those who do not use it—is the necessity that it imposes to think in
precise terms, to state problems in precise form, and to base decisions on ac¬
curately gathered information.

Uses of Computers

Basically, the computer speedily coordinates into a meaningful form

a given set of facts from a larger set of facts. Hence the first requirement in
the use of the computer for making media decisions is to define the ''facts”
that are fed into it. There is a familiar phrase in the computer world: GIGO
(garbage in, garbage out). If you speak of ''users of a product,” do you
mean households or individuals? If individuals, does it include children?
What constitutes a user? A person who has once used the product? A person
who has some on hand right now?
A second characteristic of the computer is that it deals with num¬
bers, not adjectives. All factors for a computer, therefore, must be put in
numerical form, or quantified. As an example: Suppose you plan to put all
the data of a set of magazines on a computer—their circulation, the number
of readers in different age groups, and so on. These are data already offered in
numerical form. However, in evaluating magazines you also want to consider
their editorial tone, their prestige, and the environment in which the adver¬
tisement appears. Because of this, someone must go over the different maga¬
zines and form a judgment on such qualities. He must then quantify that
judgment by giving each magazine a rating for ''editorial tone”—let us say,
from 1 to 5. The computer will then be able to give an end figure in which a
magazine rated 4 for its editorial tone would get twice the weight of a maga¬
zine rated only 2. &

Iteration

As one example of the use of the computer, we consider iteration.

Iteration is a trial-and-error method of getting a mathematical solution to a
problem that cannot be reduced to a formula in advance. It has been applied 129
Basic Media
to determine how to get the biggest reach in a list of media at the lowest Strategy
cost per thousand. Assume we use only one medium, A, reaching one million
households. We then add Medium B, which also reaches one million house¬
holds. But we find there is duplication of 600,000 households reached by the
two media, represented as follows:

Circulation

Total Exclusive

Medium A 1,000,000 700,000

Medium B 1,000,000 700,000

2,000,000 1,400,000

Thus we are reaching a total of only 1,400,000 different households. Then we

add Medium C, which also reaches one million households. However, because
of the duplication among the three media, this is now the picture:

Circulation

Total Exclusive

Medium A 1,000,000 600,000 *

Medium B 1,000,000 600,000 *
Medium C 1,000,000 500,000

3,000,000 1,700,000

* 100,000 of the former 700,000 is duplicated by Medium C.

We are paying to reach 3,000,000 households, but we are only reaching

1,700,000 different households. Then we begin wondering if we would be
better off to

Keep A and B, but drop C

Keep A and C, but drop B
Keep B and C, but drop A

As more media are added to the list, the job of picking the most
efficient combination becomes even more complex. This is the problem for
which iteration is used. Instances are commonplace in which a medium with
smaller total circulation provides greater exclusive circulation within a given
list.
The instant-coffee example (on next page) shows how a list ot —
media was reduced to 10 media, with a loss of only 5.6 percent of the house¬
holds reached. The details are provided for those who may be interested in
how such problems are handled.
 130
Planning
the
Advertising

A Media Problem

Reaching heavy users of instant coffee

The problem was to determine which combination of media used can reach
the largest number of different households that are heavy users of instant
coffee. This represents a problem for which iteration is used. You begin with
the maximum possible list of media and whittle it down in successive steps
till you get a list that gives optimum reach per dollar (in contrast to the usual

This case study courtesy SRDS Data, Inc.

PRELIMINARY RUNS A and B

MEDIA EXPOSURE AMONG HEAVY INSTANT rnFFRP
USING FEMALE HOUSEHOLD HEADS (in thousands!
NATIONAL
RUN A
RUN B
Exclusive
Exclusive
Fern. Head Heavy Network Daytime Fem. Head Heavy
Maqazines Instant Coffee TV Shows

A General - mass 233 TV Show - A 35

B General - mass 198 TV Show - B 95
C General - mass 125 TV Show - C 128
D General - mass 543 TV Show - D 176
E Shelter --*
TV Show - E _*
F Shelter 75 TV Show - F 26*
G Women 1s - mass 185 TV Show - G 35*
H Women's - mass 110 TV Show - H 52
I Shelter 14* TV Show - I 130*
J Shelter 41* TV Show - J 164
K Women1s - mass 103 TV Show - K 60
L Women's - mass 240 TV Show - L 730
M General - mass 620 TV Show - M 60
N Women 1s -- mass 82* TV Show - N 371

2,569 TV Show - 0 17*

TV Show - p 373

TV Show - Q 26

2,478

* Eliminated for first iteration

 MEDIA EXPOSURE AMONG HEAVY INSTANT COFFEE
USING FEMALE HOUSEHOLD HEADS (in thousands)
NATIONAL

Total Heavy Instant Coffee Using

Female Household Heads 15,234

First Second Third

Iteration Iteration Iterat ion
Exclusive Exclusive Exclusive
Total Heavy Using Heavy Using Heavy Using Heavy Using
Audience Fem. Head Fem. Head Fem. Head Fem. Head
Magazines & Network
Aud. Aud. Aud. Aud .
Davt ime TV Shows (All Inds.)

3,199 176 248 319

A General - mass 29,336
24,668 2,835 213 304 375
B General - mass
22,604 2,516 74* Dropped Dropped
C General - mass
20,759 2,805 216 378 455
D General - mass
15,380 2,340 71 91* Dropped
F Shelter
13,467 2,570 112 112* Dropped
G Women's - mass
2,771 152 223 304
H Women's - mass 14,758
2,505 41* Dropped Dropped
K Women's - mass 13,164
18,038 3,259 142 294 446
L Women's - mass
4,518 477 649 812
M General - mass 36,356
809 10* Dropped Dropped
TV Show - A 4,006
4,597 997 71 101* Dropped
TV Show - B
1,366 20* Dropped Dropped
TV Show - C 5,838
11,146 2,339 177 319 461
TV Show - D
1,616 51* Dropped Dropped
TV Show - H 8,522
2,244 51* Dropped Dropped
TV Show - J 9,273
1, 140 41* Dropped Dropped
TV Show - K 6,279
21,521 2,673 345 436 507
TV Show - L
5,328 988 61 132 183
TV Show - M
13,570 1,771 81 223 315
TV Show - N
979 20* Dropped Dropped
TV Show - P 7,521
566 _* Dropped Dropped
TV Show - Q 4,507

Total (Exclusive Reach) 2,602 3,510 4,177

Total Unduplicated Reach 12,815 12,354 11,958

Total Goal 15,234 15,234 15,234

Per Cent Coverage 84.1% 81.1% 78.5%

* Eliminated for next iteration

way of beginning with one medium and building upon that). In computer
language, each round of eliminations represents an iteration.
Chart I (Preliminary Runs A and B) lists 14 eligible magazines and
17 desirable television programs, each of which might be suitable for adver¬
tising instant coffee. Alongside each medium is the number of female heads
of households who are heavy users of instant coffee and whom that medium
reaches exclusively (that is, who are reached by no other medium on the list).
We review the media to see which contribute the fewest number
of households not reached by other media. As a result, we drop four maga¬
zines and five television shows from this preliminary list. That leaves 10
magazines and 12 television shows that we now combine on Chart II.

131
 132 Chart II reports on the total number of female
Planning
the household heads who are heavy users of in¬
Advertising stant coffee; this is our goal of 15,234,000
The total number reached exclusively by each
medium in the first iteration, consisting of 22
media, is now 2,602,000
The total unduplicated number reached by all
the media (that is, if a household is reached by
more than one, it is counted only once) is 12,815,000
The percentage of the goal covered by the list is 84.1%

In looking over Chart II, we again weed out those media that con¬
tribute the smallest share of exclusive households (households not reached
by others, marked by *). We drop nine. That leaves 13 media.

In the second iteration, with only 13 media, the per¬

centage coverage of goal is now 81.1%

Again, we mark for elimination the media that con¬

tribute the fewest number of households not reached by
other media (marked by ") ; this time we drop three.
In the third iteration, we have 10 media whose reach
of the total goal is 78.5%

MEDIA EXPOSURE AMONG HEAVY INSTANT COFFEE

USING FEMALE HOUSEHOLD HEADS (in thousands^
NATIONAL
FINAL SCHEDULE

Total Heavy Instant Coffee Using

Female Household Heads 15,234

Exclusive
Total Heavy Using Heavy Using
Magazines & Network Audience Fem. Head Fem. Head
Daytime TV Shows (All Inds.) Aud. Aud.
A General - mass 29,336 3,199 319
B General - mass 24,668 2,835 375
D General - mass 20,759 2,805 455
H Women 1s - mass 14,758 2.771 304
L Women's - mass 18,038 3,259 446
M General - mass 36,356 4,518 812
TV Show - D 11,146 2,339 461
TV Show - L 21,521 2,673 507
TV Show - M 5,328 988 183
TV Show - N 13,570 1.771 315

Total (Exclusive Reach)

4,177
Total Unduplicated Reach
11,958

Total Goal
Chart III
15,234
Per Cent Coverage
78.5%
 The final list developed by this series of iterations consisted of 10 133
Basic Media
media reaching 78.5 percent of the goal of female household heads who are Strategy

heavy users of instant coffee, in contrast to the original list of 22 media reach¬
ing 84.1 percent of such households. A reduction of the media list by 55 per¬
cent resulted in a loss of only 5.6 percent of households.
There are other elements in a media discussion besides the choice of
media, such as the frequency of appearance, size of advertisement, and the
copy message. But the use of the computer for iteration helps answer the
question, Which combination of media provides the widest reach per dollar?
And more sophisticated methods for using the computer are constantly being
developed.

Review Questions

1. The strategy of creating a media 4. What is the significance of reach,

plan for a product is based on a frequency, and continuity in planning
variety of factors. The text lists nine. media schedules?
Can you name them? 5. The chapter describes three different
patterns of timing in media schedul¬
2. Discuss the local, regional, national,
ing. What are they?
and selective media plans. What type
of media might be used for each 6. What is the usual benchmark for
plan? comparing costs in relation to circu¬
lation in comparable media?
3. What media strategies might best be
employed by advertisers whose 7. In what respects do you think the
budget is much smaller than that of computer can be most helpful in
their competitors? media scheduling?

Reading Suggestions

Barton, Roger, Media in Advertising. Friedman, Lawrence, "Constructing a

New York: McGraw-Hill Book Com¬ Media Simulation Model," Journal
pany, 1964. of Advertising Research, August

-, The Handbook of Advertising 1970, pp. 33-39.

Management. New York: McGraw- Gensch, Dennis H., "Media Factors: A
Hill Book Company, 1970. Review Article," Journal of Market¬
ing Research, May 1970, pp. 216—
Bogart, Leo, "Is It Time to Discard the
Audience Concept?" Journal of Mar¬ 225.
keting, January 1966, pp. 47-54. Also Greenberg, B., and B. Dervin, Mass
in Kleppner and Settel, Exploring Communication among the Urban
Advertising, p. 217. Poor,” Public Opinion Quarterly,
Summer 1970, pp. 224-235.
Cook, Harvey R., Selecting Advertising
Media: A Guide for Small Business. Jones, Richard P., "Quiet Revolution in
Washington, D.C.: U.S. Government Media Planning,” Media Decisions,
Printing Office, 1969. September 1967, p. 36ff. Also in
 134 Kleppner and Settel, Exploring Ad¬ Twedt, Dik W., "How Can the Adver¬
Planning
vertising, p. 209. tising Dollar Work Harder?" Journal
the
Advertising Pomerance, Eugene, and Hubert Zielske, of Marketing, April 1965, pp. 60-62.
"How Frequently Should You Ad¬ Also in Kleppner and Settel, Explor¬
vertise?" Media/Scope, September ing Advertising, p. 197.
1958, pp. 25-27. Vitt, Sam B., "How Media Are Se¬
Ray, Michael L., and Alan G. Sawyer, lected," Madison Avenue, August
"Repetition in Media Models: A 1966, p. 8ff. Also in Kleppner and
Laboratory Technique," Journal of Settel, Exploring Advertising, p. 183.
Marketing Research, February 1971, Wolfe, H. D., J. K. Brown, G. C.
pp. 20-29. Thompson, and S. H. Greenberg,
Roth, Paul M., How to Plan Media. Evaluating Media. New York: Na¬
Skokie, Ill.: Standard Rate & Data tional Industrial Conference Board,
Service, 1968. Inc., 1966.
Sissors, Jack Z., "Matching Media with Zeltner, Herbert, "Are Waves Worth¬
Markets," Journal of Advertising Re¬ while? Media/Scope, November
search, October 1971, pp. 39-43. 1964, pp. 10-18.
 ✓
♦

III
MEDIA
 THE TOP 50 NATIONAL ADVERTISERS OF 197(1

Total
IN
Rank Company Millions Newspapers Magazines*

1. Procter & Gamble Co. $188,417.5 $ 751.2 $ 7,362.8

2. General Foods Corp. 121,509.7 9,140.3 11,858.8
3. General Motors Corp. 119,164.2 20,096.0 23,856.4
4. Bristol-Myers Co. 110,872.0 1,872.2 20,381.2
5. Colgate-Palmolive Co. 101,480.7 3,169.3 5,018.4
6. American Home Products . 90,544.3 3,322.8 7,334.1
7. R. J. Reynolds Industries . 83,986.5 1,661.8 9,731.8
8. Ford Motor Co. 79,745.5 11,220.9 14,544.9
9. Sterling Drug Inc. 73,212.5 1,169.8 10,003.3
10. Warner-Lambert Pharmaceuticals . 73,123.7 223.1 3,108.5

11. Lever Bros. 67.019.8 2,009.1 3,734.9

12. Philip Morris Inc. 66,703.8 532.6 13,745.7
13. American Brands . 58,572.7 7,397.8 15,438.9
14. Coca-Cola Co. 52,965.8 2,276.3 6,064.6
15. Sears, Roebuck & Co. 52,685.0 253.7 13,399.1
16. Gillette Co. 51,805.5 304.6 5,383.6
17. General Mills . 51,777.5 1,752.0 7,004.1
18. Kraftco . 50,073.0 6,307.7 8,897.4
19. Chrysler Corp.- . 48,714.1 7,034.2 9,366.4
20. Distillers Corp.-Seagrams Ltd. 46,986.7 11,883.0 25,825.0

21. Brown & Williamson Tobacco Co. . 46,700.4 2,800.0 11,457.3

22. Loew’s Corp. 46,413.0 3,535.9 5,364.9
23. PepsiCo Inc. 46,060.2 1,566.6 2,896.5
24. American Telephone & Telegraph Co. 45,889.9 4,036.0 9,568.9
25. Miles Laboratories . 42,136.5 906.8 1,845.8
26. Kellogg Co. 38,855.0 1,979.8 2,906.0
27. Rapid-American Corp. . 38,807.9 4,767.9 10.811.7
28. Liggett & Myers Inc. 36.016.6 3,230.6 12,198.2
29. Norton Simon Inc. . 35,887.7 4,748.7 8,075.2
30. International Telephone & Telegraph 34,938.2 1,699.8 5,435.5

31. Goodyear Tire & Rubber Co. 34,409.5 20,599.1 3,320.2

32. Campbell Soup Co. . 33,179.7 2,533.2 6,859.7
33. S. C. Johnson & Son . 32,193.2 489.6 541.1
34. RCA Corp. 31,662,4 8,317.6 10,729.6
35. Firestone Tire & Rubber Co. 31,243,4 18,676.4 3,164.3
36. Alberto-Culver Co. . 30,278.5 46.3 2,604.3
37. Ralston Purina Co. . 29,942.4 922.6 980.4
38. Schering-Plough Inc. 29,595.9 756.3 3,234.7
39. Johnson & Johnson . 27,174.2 116.0 7,312.4
40. Eastman Kodak Co. . 26,637.4 2,445.1 7,241.4

41. Richardson-Merre 11 . 26,253.6 1,990.6 3,591.0

42. Pfizer Inc. . 26,156.8 46.3 5,119.1
43. J. B. Williams Co. . 25,476.0 797.5 1,885.9
44. Heublein Inc. 24,736.3 2,093.2 5,720.4
45. American Cyanamid Co. . 24,543.3 57.4 4,879.8
46. Volkswagen of America . 24,335.7 2,950.0 6,510.5
47. Carnation Co. 24,218.3 1,222.9 958.4
48. Standard Oil of New Jersey . 24,061.0 2,598.4 2,933.8
49. Block Drug Co. 23,844.0 3,647.9
50. Westinghouse Electric Corp. . 23,771.7 4,327.3 8,209.0

Reprinted with permission from the June 21, 1971 issue of Advertising Age. Copyright 197?
CPENDITURES IN MAJOR MEDIA

Farm Business
Network Spot Network
Publica¬ Publica¬ Spot
Television Radio Radio Outdoor
tions tions Television

$50,796.7 $128,444.5 $ 278.0 $ 4.1 $--

$ 20 $ 769.2
49,259.2 44,642.0 5,263.0 502.0 438.8
135 0 270.6
8,961.1 32,972.3 20,906.0 2,804.3 4,930.5
457.3 4,180.3
23,351.1 57,078.6 2,843.0 599.8 458.9
4,287.2
36,860.9 46,507.8 8,141.0 1,690.0 50.0
43.3
26,355.8 40,791.8 10,731.0 1,360.0 222.2
78 9 347.7
14,401.2 52,405.9 4,304.0 804.7 246.0
254 3 176.8
7,544.6 31,345.8 7,430.0 1,676.3 2,970.7
1,214.8 1,797.5
442.8 12,940.1 41,324.0 4,195.0 2,975.5
162.0 1.7
4,334.1 17,853.4 46,200.3 1,087.0 315.6

20,893.2 38,554.9 1,331.0 496.6 1

81.5 11,491.5 36,685.8 2,500.0 833.7 833.0
2,092.0 31,365.6 899.0 15.6 706.7
5.4 661.7
16,944.6 15,527.8 10,239.0 1,439.2
474.3
18,960.9 15,273.5 4,306.0 59.5 432.3
114.3 16,320.3 27,479.3 1,817.0 382.9 3.5
17,940.0 24,152.4 117.0 386.7 13.6
16.6 395.1
1,844.2 13,181.1 18,359.3 1,025.0 108.8 308.8
40.7 646.9
491.9 3,926.7 21,341.6 4,869.0 930.5
106.9 7,920.9
751.2 254.3 202.0 150.3

7.657.6 21,881.9 261.0 2,591.0

51.6
15,536.2 15.903.6 3,319.0 1,127.6 1,579.7
46.1
13,797.7 16.864.3 9,194.0 468.0 812.7
69.7 390.7
11,110.1 12.928.3 4,806.0 64.1 1,071.0
7.3 2,308.2
614.2 9.594.3 28.937.6 69.0 168.8
8.490.3 24.934.7 334.2
64.1 145.9
1.788.7 16,210.6 127.0 4.340.7
761.3
3.957.3 13,842.6 635.0 247.0 1,628.5
5.8 271.6
390.4 10,169.0 9,150.7 1,792.0 1.561.7
13,434.9 9,707.5 330.0 18.0 442.5
3,870.0

973.0 2,778.3 6,067.9 108.0 97.1

465.9
6.388.1 13,590.4 1,897.0 1,293.8 92.5
525.0
2.111.9 28,803.7 110.0 135.2 1.7
3,953.7 6,367.2 480.0 35.3 414.0
1,365.0
1,833.0 5,681.1 861.0 53.9 6.2
390.9 576.6
14,472.8 12,971.0 31.0 4
152.7
7.905.9 18,739.1 523.0 246.2 127.2
448.0 50.0
5.172.2 13,966.2 1,368.0 2,171.4 860.9
10.1 2,056.1
11.5 530.6 9,807.5 7,737.2 1,659.0
2,898.0 2.208.3 10,994.4 798.0 46.0
6.2

850.5 6,039.7 13,220.9 508.0 14.8

38.1
1,010.5 2,005.4 14,921.6 1,388.0 536.2 392.1
737.6
60.0 138.4 22,425.0 47.0 122.2
83.4 6,040.4 6,486.9 2,374.0 1,938.0
3,498.1 3,265.4 11,250.6 390.0 118.4 11.3
1,072.3
233.4 3,841.0 8,859.1 453.0 1,488.7
69.8 569.2 9,510.1 11,562.1 207.0 102.2 16.6
165.0 898.1 6,617.7 6,620.4 3,026.0 1,201.6
73.6 3,152.9 15,971.6 998.0
33.9 2,500.0 5,335.4 3,211.6 74.0 80.5

by Crain Communications, Inc.

~n ■ •
Since the advent of the automobile, nothing has changed American family
life so much as television. Nothing else has had such an impact on advertising.
Over 96 percent of all American households, representing 62 million homes,
have television sets. Many have two or more. The average family has its set
on for 6 hours and 20 minutes a day to which many fathers would say,
"In my house, that’s an understatement!”
Television accounts for 45 percent of all media expenditures for na¬
tional advertising. The use of television by local advertisers represents the
fastest-growing segment of all the advertising media; between I960 and
1970, it grew over 150 percent.1 2

Features and Advantages

Television provides the most spectacular way in which an advertiser can reach
the greatest number of people at one time. The average nighttime television
network program reaches between one sixth and one fifth of all of the tele¬
vision homes in the country, and some of the very highest-rated programs
reach one fourth of them. Eighty percent of all adults view TV at some time
during the average day, and 95 percent during the average week.3

1 Broadcasting Yearbook for 1912, p. 11.

2 Television Bureau of Advertising Index, February 1970.
3 See p. 121.

139
Average Quarter-hour Household Viewing of Television

The number of house¬

holds using television
nationally increases
steadily throughout the
day, then jumps sharply
during after-work hours,
reaching a peak between
8 and 10 p.m. There is
a higher morning view¬
ing level for Los An¬
geles, and a higher late
evening level for New
York.

Courtesy, A. C. Nielsen
Company

Based on N.Y. time, except N.Y.T. plus 3 hours

-Los Angeles " New York in the Pacific Territory. Excludes unusual days.

What makes television so attractive to advertisers, and what makes the

total audience that can be reached through television so huge, is the diversity
of TV programming. Almost everybody, no matter what his taste, has a few
favorite programs he watches fairly regularly.
TV is an intimate medium. It is a great medium for demonstrating
how to do something, or how something works, or how a product performs.
Through choice of time and programs, an advertiser can reach a great pro¬
portion of listeners who are of the sex and age group he is seeking.

Limitations and Challenges

Time for the commercial message on television is fleeting. Most commercials

are for 30 seconds; a one minute commercial is considered a long one. The
challenge is to hold the attention of the viewer and leave with him a message
that will cause him to remember the name of the product favorably. We have
seen many commercials do this in an informative, often entertaining way.
We have seen many commercials that are dull and, even in 30 seconds, boring.
The biggest problem facing television is clutter—the playing of
credits for all personnel involved in a program, station-break announcements,
public-service notices, "billboards” (just the name of a product or a slogan),
in addition to the commercials crowded upon each other three or even four
in a minute. The viewer comes away from this kaleidoscope with a high de-

140
gree of annoyance and confusion about which product was advertised; the 141
misidentification rate is high, and the number of commercials being offered T elevision

is constantly increasing.

Forms of Television Usage

An advertiser can buy television time through a network (network TV). Or

he can buy time as he sees fit from individual stations (spot TV). If a national
advertiser buys spots, it is, strictly speaking, national spot TV, but is generally
referred to as just spot TV. When a local advertiser uses spots, it is, strictly
speaking, local spot TV, but is referred to as just local TV. In 1971, 48 per¬
cent of all television expenditure was for network; 34 percent, spot; 18 per¬
cent, local.4 In the present discussion we deal with network and spot chiefly;
we discuss local television in the retailing chapter.

Network Television

A television network consists of a number of interconnected stations

capable of transmitting simultaneously the same program originating at one

4 Annual Report. Federal Communications Commissions, 1972 (1971 figures).

THE TELEVISION STRUCTURE

' 7 t , , ,
: : ' .... ..

THE
LOCAL STATION

CONTRACTS TO CARRY SELLS TIME AS AN

PROGRAM MING OF INDEPENDENT: CALLED
NETW ORK SPOT TELEVISION

WHEN USED BY WHEN USED BY

NATIONAL LOCAL
WHO HAS SOLD TIME TO
ADVERTISERS ADVERTISERS
NATIONAL ADVERTISERS
IT IS REFERRED TO AS IT IS REFERRED TO AS 1
SPOT LOCAL

AS IN THE FORM OF
FULL SPONSOR SPOT ANNOUNCEMENTS
MULTIPLE SPONSORS PARTICIPATIONS
PARTICIPATIONS PROGRAMS
 of their stations. (Because of difference in time zones across
the country, some stations may show a network program as a
delayed telecast.) There are three national networks, ABC,
CBS, and NBC. Each has arranged affiliations with stations
throughout the country whereby these stations will carry the
network’s programs and commercials at certain times. The
stations sell the rest of the time independently. An advertiser
placing a schedule with a television network is obliged to use
a prescribed minimum number of affiliated stations from their
total list, and expand his list from their other stations as he
TV Time Sales
sees fit. Networks can give an advertiser the largest nationwide
Source: Annual Report of The Federal
Communications Commission, 1972 audience for his message.
(1971 figures). Commercial time on network television is sold in units of 30 seconds
and 60 seconds. A single minute of commercial time in a nighttime network
program generally runs in the range of $35,000 to $70,000, with "specials”
costing much more (bowl games and world championship games cost close
to $200,000 for a commercial minute).
But network coverage has its problems and challenges. In the first
place, we are speaking of large sums of money, for both time and production.
These costs rule out any but companies that have a product or line of products
with widespread distribution. Most network advertisers have a whole range
of corporate divisions, or products, to share the time and costs. Then, too,
there is great competition for good programming. This means not only a
program that in itself is good, but one that can get on at a time in which a
program on a competitive station won’t cut too deeply into its rating; also at
a time when it can get a good carry-over from the preceding program.5
Each station on the network lineup is different in the composition of
the market area and its competitive TV programming. An advertiser’s message
on a network, therefore, may not always be distributed across the country in
ideal proportion to the distribution of his market. For this reason, an ad¬
vertiser will often supplement his use of network television in certain markets
with spot television. An advertiser can buy time on a network as a single,
multiple, or participating sponsor.

Single sponsorship. With single sponsorship, advertisers can de¬

velop an extensive collateral advertising program with the trade. However,
single sponsorship represents the biggest cash commitment in television.
Singly sponsored programs are generally so costly that they are seldom used
by manufacturers of a single product only, except to make one outstanding
splash that will receive great attention from the public and earn prestige with

5 Based on the assumption that networks continue to control the programming of

their facilities.

142
 _ -pv Courtesy, CBS Television Network
TV Control Room
This is a production control console at the CBS Television Network Center in New
York City. The bank of picture monitors are in the background. Seated from left
to right are the technical director, script girl, program director, assistant program
director, and audio operator.

the trade. The chief users of singly sponsored programs are the large com¬
panies interested in developing a favorable corporate image (AT&T, Xerox)
or companies selling seasonal product lines (Hallmark cards).

Multiple sponsorship. Programs are sold on a multiple-sponsorship

basis in different ways, such as quarters of a football game or alternate weeks
of a nighttime half hour. Usually, the advertisers cooperating in a multiple
sponsorship are seeking some of the advantages of single sponsorship—identity
with a prestigious program, promotional opportunities, and merchandisability
to their dealers—but at reduced cost and risk. Many sports events, such as
the World Series and the bowl games, are sold on this basis, and frequently
prestigious prime-time evening programming will have multiple sponsorship.

Participating (network) advertiser. Most network television com¬

mercial time is sold on a participating basis; that is, a number of advertisers
each pay for 30 seconds or 60 seconds of commercial time in a program. Ad¬
vertisers may participate in a program one time only, or they may participate

145
in it a number of times on either a regular or irregular schedule. Through
participations, an advertiser can have his message delivered to network audi¬
ences at the lowest cost and least risk. By spreading his budget over a number
of different network programs, he can reach a greater variety of audiences.
This method of network-time buying is known as a scatter plan.
The use of participations in network television advertising has greatly
increased; that of single and multiple sponsorships has steadily declined. In
1970, 88 percent of network commercials were participating, 7 percent al¬
ternate or multiple, and 5 percent single.6

Buying Network Time

Buying single or multiple sponsorship of television network pro¬

gramming requires long-range planning. The advertiser’s time buyer has to
shop around among the networks to see what time slots or programs are avail¬
able for the next season; study the programs that will be competing on other
networks for the audience during the same time periods; consider the
preceding or lead-in programming to determine what kind of audience it is
likely to make available for the beginning of the show, and the ever rising
cost.
Buying network participations is somewhat simpler. Here the buyer
asks, "What’s available?’’ He will generally be offered several "packages” of
participations by each of the networks, from which he can select the com¬
bination of participations that he believes will best reach the audience he is
after.

6 Advertising Age, January 19, 1970, p. 6.

144
 Spot Television 145
Using
Television
Spot television, in contrast to network television, is the time sold by
an individual station to an individual advertiser.7 Spot television gives the
national advertiser complete flexibility in choice of markets, the number and
length of the spots he uses in each market, and the manner in which they are
scheduled in each market. Spot television can be used by itself; it can also be
used to supplement a national network television schedule in markets where
the local affiliate is not the strongest station, or in markets of above-average
importance to the advertiser. Or it can be used to reinforce a newspaper or
magazine campaign.

Buying Spot Time

Spot time is most often sold in 10-, 20-, 30-, and 60-second lengths,
but chiefly 30 seconds. The 10-second spot—just long enough for a short
selling message identifying the product—is often referred to as an ID (short
for identification), referring both to product identification and to the early
practice of scheduling these announcements in conjunction with station call-
letter and channel-number identifications. Most commercial ID’s are actually
only 8 seconds long, allowing 2 seconds for station identification. The 20-
second spot is sometimes referred to as a chainbreak, from its frequent schedul¬
ing in the breaks between network programs.
Rates on a station vary according to the time of day or night selected,
reflecting the differences in the size of the audiences at the various hours.
Rates are usually grouped by time classifications, most often beginning with
Class AAA or AA (rates for the choicest and most costly time periods),
through Class A, Class B, Class C, and so on, in descending order of size of
audience and cost. Each station has its own classifications, and lists them on its
rate card. Some are simple, as the following:

Class A—7:30 p.m. to 11:00 p.m.

Class B—All other times

Most stations, however, have four or five time classifications, as in this instance:

Class AA—Daily 7:30-11:00 p.m.

Class A —Daily 7:00-7:30 A.M.; Sun. 5:30-7:30 P.M.
Class B —Mon. thru Sat. 4:30-6:00 P.M.; Sun. 2-5:30 P.M.
Class C —Sat. sign-on—4:30 P.M.; Mon. thru Fri. noon—4:30 p.m.
Class D —Mon. thru Fri. sign-on-noon; Sun. sign on-2 P.M.

7 The term "spot” is another of those words in advertising that are used in two
senses: (1) time-buying use—a way of buying time on a non-network show; and (2) creative
use—"We need some 30-second spots.”
 CLASS B
WQXI-TV Fixed (*) (t)
60 sec. 160 140 120
(Airoat* September 30. 1991) 95 85 70
30/20 sec.
10 sec....... 50 45 35

CLASS C
60 sec- 100 85 70
30/20 sec.. 60 50 35 Extract of a page
10 sec. 30 25 15
of TV rates from
CLASS D
Data verified/revised for June y71 issue 60 sec...—. 80 70 60
Standard Rate &
30/20 see.. 50 40 35
Madia Coda 6 211 0185 6.00 10 sec.----- 25 20 15
l’aciflc Sc Southern Company, Inc., 1611 W. Peach¬ (*) Preempt. Data Service.
tree St., N. E. Atlanta, Ga. 30309. Phono 404- (f) Immediately preemptible.
892-1611. TWX 810-751-8360. Here all rate cards
1. PERSONNEL 8. PARTICIPATING ANNOUNCEMENT PROGRAMS
(60 seconds unless otherwise specified)
are published in
President—Arthur H. McCoy.
MON THRU FRI: ~
Fixed' (*>
" (t)
Vice-Pres. & Gen'l Mgr.—George Hagar.
General Sales Manager—James Thrash. Morning Funnies—7-7:30 am. . 50 40 30 full, giving
30/20 sec..-.-. 30 25 20
Sales Manager—Steve Halpem.
Station Manager—Sid Pike. 10 sec.......... 15 13 10 information in
Promotion Manager—Tony Visk. Tubby & Lester—7:30-9 am.
60 sec.....-. 100 80 60 standardized
2. REPRESENTATIVES 30/20 sec...... 50 40 30
20 15
Metro TV Sales. 10 sec...—--- 25
numerical
Romper Room—9-10 am... . 100 80 60
3. FACILITIES 30/20 sec........
10 sec...—.
50
25
40
20
30
15
sequence for each
Video 316,000 w., audio 63,200 w.; ch 11.
Antenna ht.: 1,040.6 ft. above average terrain. Morning Movie—10-11:30 am.
60 sec-----...- 100 80 60
medium.
Operating schedule: 7-1:15 am. EST.
Transmitter: 110 Arizona Ave.. N. E.. Atlanta. Ga. 30/20 sec.-.-.— 50 40 30
10 sec.-... 25 20 15
4. AGENCY COMMISSION Day ROS—10 am-4:30 pm-- . 100 85 70
15% to recognized agencies on time charges: no cash 30/20 sec. .- 50 45 35
discount. 10 sec.....— 25 20 15
Free for all Movie—4:30-6 pm.
5. GENERAL ADVERTISING See coded regulations 60 sec.... 220 200 180
30/20 sec.-... 110 100 90
General: la, 2a, 2b. 3a. 3b, 3c. 3d, 4a, 5, 6a. 8.
10 sec........ 55 50 45
Kate Protection: 110i, 11m, 12m, 13m, 14c, 16.
Contracts: 21, 22a, 22c, 23, 25, 26, 29. 32b. Dick Van Dyke/Hazel/What’s My Line—6-7:30 pm,
Basic Kates: 41c, 42, 44b, 45a. rotates thru Hazel/Line 6:30-7:30 pm Sat.
Comb.; Coat. Discounts: 60f. 60 sec.... 360 300 270 Courtesy S.R.D.S.
•Cancellation: 70a, 70f, 73a, 73b. 30/20 sec .-.. 180 150 135
Prod. Services: 84, 85, 86, 87c. 10 sec.... 90 85 70
t*) Announcement contracts subject to cancellation SUN THRU THURS:
on 14 days prior written notice. Dick Cavett—11:30 pm-concl.
(t) Prime time designations of AA1, AA2, AA8 60 sec..... 100 80 60
28 days. 30/20 sec .-. 50 40 30
Affiliated with ABC Television Network. 10 sec.......... 25 20 15
All contracts with the same advertiser may be com¬
bined for determining rate of discount. NEWS BLOCKS
Eyewitness News—6:55-7 am Mon thru Fri.
Multiple Product Announcements 60 sec....... 50 40 30
Station does not accept commercials of any lengtL 30/20 sec.... 25 20 15
containing advertising messages of two separate cor¬ 10 sec....... 15 10
porations; nor one minute announcements containing Eyewitness Midday News—12:30 1 pm Mon thru Fri.
more than two selling messages or more than two 60 sec.... 120 100 80
products (or services) ; or announcements of less than 30/20 sec .... 60 50 40
one minute in length which urge the viewer to pur¬ 10 sec. 30 25 20
chase more than one product (or service). Service Eyewitness News thru Fri.
charge for splicing and/or editing piggyback an¬ 60 sec. 200 180 150
nouncements will be 15.00. 30/20 sec.... 100 90 75
10 sec... 50 45 40
Product Protection Eyewitness News—approx Mon thru Fri.
Station will attempt to provide 10 minutes separation 60 sec..... 50 40 30
of directly competitive products, where scheduling is 30/20 sec—.. 25 20 15
under control of station, Rebates, credits, and make¬ 10 sec..... 15 10
goods will not be issued on any product conflict other SAT:
than those occurring back-to-back. Best of Hollywood—11:31 Sat thru Fri,
rotation.
60 sec. 120 100 80
6. TIME RATES 30/20 sec. 60 50 40
No. 5 Eff 1/18/71—Rec’d 1/25/71. 10 sec. 30 25 20
Rev. 3/8/71—Rec’d 3/15/71. -noon.
Saturday Cartoon Rotation—7:30 am-noor,.
60 sec. 100 80 60
7. SPOT ANNOUNCEMENTS 30/20 sec.... 60 40 30
A—Mon thru Fri 6-7:30 pm; Sat & Sun 5-7:30 pm. 10 sec 30 20 15
B—Mon thru Fri 4:29-5:59 pm; Mon thru Sun 11- Saturday Afternoon Movie—3-4:30 pmm.
11:30 pm; Sat & Sun 3:29-4:59 pm. 60 sec. 100 55 70
C—Mon thru Sun noon-4:29 pm. 30/20 sec. 50 45 35
D—Mon thru Sun sign-on-noon & 11:30 pm-sign-off. 10 sec. 25 20 15
(30/20 seconds unless otherwise specified) Wide World of Sports—5-6:30 pm.
MON PM: Fixed (*) (t) 30/20 sec.. 250 225 200
8 00 .-. 300 250 225 10 sec. 125 110 100
8:30 ".. 300 250 225 )tn.
Championship Sports—10:30-11:30 pm.
9- conci, rotates to Sun thru Tues Movie. 60 sec 400 360 300
30/20 sea—. 600 500 450 30/20 sec.. 200 180 150
10 sec.......... 105 90 75
TUES: SUN:
7-30-8:30, rotates to Welby/Eddie’s Father.
30/20 sec...-. 600 500 450 John Wayne Theatre—noon-2 pm.
8:30-10. rotates to Sun & Mon Movie. 60 sec. 100 85 70
30/20 sec.-.-. 550 450 400 30/20 sec.. 50 45 35
10 sec.... 25 20 15
10- 11, rotates to Mod Squad/Eddie’s Father.
30/20 sec.-.-. 600 500 450 Movie Matinee—2-4 pm.. 100 85 70
30/20 sec... 50 45 35
WED: 10 S6C 25 20 15
8 00. rotates to Welby/Mod Squad. Sunday Free for all Movie—5-7 pm.
30/20 sec. 600 500 450 60 sec. 450 400 360
8:30-10:30 . 290 250 30/20 sec._.225 225 200 180
10:30-11 . 250 225 200 10 sec.. 115 100 90
20 sec. 210 190 170 (*) Preempt.
THURS: _ „„„ (t) Immediately preemptive.
The hours from 7:00 p.m. to 11:00 p.m. EST (6:30 p.m. to 10:00 p.m. 147
Using
CST) attract peak audiences, are called prime time, and are the most expensive Television
time in television. On network-affiliated stations, hours of this time are
programmed by the networks, with stations selling "spots” early in the
breaks between programs. The network stations have 7:00 to 7:30 P.M.
E.S.T. for their own programming and sale.
The hour or so adjacent to prime time is called fringe time. Early
fringe precedes prime time; late fringe follows prime time. These rank next
to prime time in costliness.
The Standard Billing week is Monday through Sunday. The Standard
Billing month ends on the last Sunday.

The Rate Structure

Stations offer a variety of discounts.

Frequency discounts. These are offered to advertisers usually in the

form of a plan rate for a given number of spots within a week’s time—that is,
5 plan or 10 plan.

Package rate. The package rate is generally a total price for a

schedule of spots at different time belts that costs less than the total of the
rates for the individual spots making up the package.

Preemptible rate. A considerable proportion of spot television ad¬

vertising time is sold on a preemptible (lower-rate) basis, whereby the ad¬
vertiser gives the station the right to sell his time slot to another advertiser
if he will pay a better rate for it, or if it is part of a larger package deal. If the
station has the right to sell to another, higher-rate advertiser any time up until
the time of the telecast, the rate for the preemptible advertiser is called the
immediately preemptible (IP) rate. If the station can preempt only if it gives
the original advertiser two weeks notice, the rate is designated as preemptible
with two weeks notice. An advertiser can buy a nonpreemptible time slot by

EXAMPLES OF WEEKLY SCHEDULES IN THE TOP 100 MARKETS

Gross Audience (000) Cost Per 1000)

Number of 30 sec. Announcements Weekly
Spot TV CPM*S

and Daypart Used Cost Homes Men Women Homes Men Women
10 Daytime M-F $ 43,030 34,230 8,170 28,190 $1.26 $5.27 $1.53
5 Early Evening 50,565 34,835 19,080 25,085 1.45 2,65 2.02
5 Nighttime 142,610 48,730 32,485 42,005 2.93 4.39 3.40
5 Late Evening 35,345 19,720 12,735 16,160 1.79 2.78 2.19
5 Weekend Day 39,025 21,300 15,225 12,590 1.83 2.56 3.10
Source: TvB's Spot TV Planning Guide
Feb. 1971

Courtesy, Batten, Barton, Durstine, & Osborn, Inc.

 148 paying the highest rate; the two-weeks preemptible rate is the next highest,
Media and the immediately preemptible rate is the lowest. The moving of a pre¬
emptible spot elsewhere on a schedule (with the advertiser s approval) is one
of the major causes of confusion in billing and paying for spot television
schedules.

Participations. Every station carries its own regularly scheduled non¬

network shows in which spot advertisers can buy participations. Some are
built around a popular local personality. Most are half-hour or hour-length
films created by independent producers and rented (or syndicated) to local
stations for scheduling to attract certain types of audiences. They may also
include reruns of popular old network offerings.

Special features. News telecasts, weather reports, sports news and

commentary, stock-market reports, and similar programming are called spe¬
cial features. Time is generally sold in connection with special features at a
premium price.

Run of schedule (ROS). An advertiser can earn a lower rate by

permitting a station to run his commercials at its convenience whenever time
is available, rather than specifying the station-break positions, participating
programs, and special features in which it must appear. This is called an ROS
(run of schedule) basis.

Negotiation. There is a wide practice, especially on large schedules,

of negotiation for rates better than the published card rates. We discuss this
matter in Chapter 25.

Piggybacks and integrated commercials. Until the late 1960’s, most

television time was sold in units of 10, 20, or 60 seconds. Sometimes an ad¬
vertiser would buy a 60-second spot and run commercials for two products
on it, called piggybacking. Since then, time has been sold in 30-second units;
the 20-second spot is fading from use; hence the need for piggybacking is
likewise fading out.

Other Trade Practices

Closing time. Tapes and films that are to be part of a commercial

must be in the station’s hands 72 hours in advance. Stations are usually capable
of accommodating a request for a shorter closing time in special instances.

Certificate of performance. Station invoices for spot television time

include a Certificate of Performance (station affidavit) attesting to the fact
that the commercials were run on the days and times enumerated. (A similar
statement appears on network bills, too.) Unfortunately these statements are
not always submitted on time for prompt payment, nor are they always ac¬ 149
Using
curate. A system for electronically coding TV commercials has been developed Television
that, by the help of computer tape, provides an exact record.

Station representatives. Men with offices in the main advertising cen¬

ters act as sales agents for stations around the country. They provide the time
buyer with data about the market, the station’s programming, and the audi¬
ence of the station; they find out for the time buyer what times are available
on the various stations they represent (mostly by long-distance telephone or
teletype). The station representative submits his list of availabilities to the
time buyer, who selects the announcement positions he regards as the most
desirable. Some representatives handle both television and radio stations; others
specialize in television only or radio only.

Product protection. Advertisers do not want to have a commercial

for a competitive product appear close to their own; they would prefer to
have a 15-minute, or at least a 10-minute, separation. This spacing of com¬
mercials in relation to those of competitive products, or to an undesirable type
of product, is called product protection, and is subject to negotiation between
advertisers and stations.

The paper problem. Ask any media man what the biggest headache
is in the handling of spots (both for television and radio), and he will reply,
"Paper work!” There is a lot of paper work involved in assembling the avail¬
ability of spots for a schedule, in gathering the demographic information for
making choices. There is paper work involved in placing orders under the
various discount plans and deals. There is a tremendous amount of paper
work involved in trying to get records of the appearances of spots, particularly
when the bulk of them are bought on a preemptible basis. Then comes the
question of keeping track of the make-goods (running of commercials which
were skipped in schedule), before paying the bills for them. As a result, pay¬
ments are often held up till some open-billing matters on it are resolved;
meanwhile, the next month’s bill comes along.

Elements of TV Planning

In making plans for a television effort in a market, the advertiser keeps asking,
"How can I reach the greatest number of people who may buy my product?
On what station? At what time? On what program? At what cost?” The adver¬
tiser himself has to define the type of person who may buy his product. Man?
Woman? Child? But then he can turn to the audience-measurement research
services to learn what stations or programs reach each of these groups, and
what their age brackets are.
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 4 WK TIME PERIOD AVG SPOT BUYING GUIDE
ADI RATINGS TIME TOTAL SURVEY AREA, IN THOUSANDS

DAY, WOMEN MEN TNS CHD ADI TOTAL WOMEN HOUSEWIVES MEN TEENS CHILDREN
METRO TOTAL
TIME, TV TV HH TV PER
ADULTS
HH HH SONS
AND RATING 18 + TOTAL
TOT, 18-49 18-34 TOT. 18-49 TOT. TOT. RTG 2+ TOTAL 18-49 18-34 25-64 25-49 TOTAL -50 TOTAL 18-49 18-34 TOTAL GIRLS 6 11
STATION

27 28 29 32 33 35 37 1 3 5 6 7 8 9 10 11 12 14 15 16 17 18 21 22 23 24

TUESDAY
5.OOP - 5.3 OP 4.45P- 5.15P
WJBF 7 6 4 6 6 16 18 17 14 27 48 18 12 7 4 9 6 9 6 6 4 3 10 5 21 13
WRDW 10 8 6 8 6 15 18 16 18 25 47 28 19 10 3 13 8 17 8 10 4 3 10 4 9 5
17 14 10 14 12 31 36 36 33 52 95 46 31 17 7 22 14 26 14 16 8 6 20 9 30 18

WJBF 8 8 7 9 8 19 19 19 18 33 61 29 17 10 5 13 8 14 8 12 7 5 15 9 18 12
WRDW 11 9 8 8 6 13 18 17 18 27 52 29 17 9 4 12 8 16 9 12 6 3 9 4 14 6
19 17 15 17 14 32 37 39 35 60 113 58 34 19 9 25 16 30 17 24 13 8 24 13 32 18

WJBF 25 21 17 ^26 20 21 10 29 27 47 86 58 31 17 8 25 14 28 15 27 14 8 14 8 14 8
WRDW 13 12 10 13 13 3 5 18 20 27 48 34 19 11 5 15 10 18 11 15 9 5 5 2 10 5
38 33 27 39 33 24 15 51 47 74 134 92 50 28 13 40 24 46 26 42 23 13 19 10 24 13

WJBF 25 23 19 28 23 21 10 38 37 59 111 89 47 24 11 37 21 42 21 43 21 13 13 7 9 5
WRDW 14 15 11 17 18 4 8 20 25 31 50 43 22 15 7 20 14 21 14 21 14 7 1 6 3
39 38 30 45 41 25 18 62 61 90 161 132 69 39 18 57 35 63 35 64 35 20 14 7 15 8

WJBF 31 31 31 28 28 48 32 39 38 61 134 94 50 30 15 39 25 44 25 44 26 17 22 12 18 13
WRDW
15 15 13 12 10 10 24 21 24 32 63 47 25 16 7 21 15 25 16 22 13 7 4 1 13 7
46 46 44 40 38 58 56 66 63 93 197 141 75 46 22 60 40 69 41 66 39 24 26 13 31 20

WJBF 36 39 40 31 32 48 45 43 41 70 172 109 62 40 22 48 32 53 32 47 31 21 32 19 32 24

WRDW

15 15 13 13 10 8 24 20 22 32 70 45 25 16 8 20 14 24 15 20 10 7 6 2 20 11
51 54 53 44 42 56 69 69 64 102 242 154 87 56 30 68 46 77 47 67 41 28 38 21 52 35

WJBF 35 38 40 31 32 48 45 47 44 78 190 119 69 45 25 54 36 58 35 50 33 20 33 21 39 27

WROW

14 14 14 13 10 8 23 20 22 30 68 44 25 16 8 19 13 22 14 20 10 7 6 2 18 10
49 52 54 44 42 56 68 69 66 108 258 163 94 61 33 73 49 80 49 70 43 27 39 23 57 37
8.30P -
WJBF 26 30 31 24 24 25 22 41 42 67 157 102 58 39 22 47 32 51 32 45 30 17 26 14 29 20
WRDW
23 25 24 18 18 19 20 24 25 37 84 56 33 23 13 25 18 29 19 23 14 9 10 6 18 10
49 55 55 42 42 44 42 69 66 104 241 158 91 62 35 72 50 80 51 68 44 26 36 20 47 30

WJBF 24 28 30 21 22 24 18 32 38 53 117 82 46 32 18 38 26 41 27 36 24 12 19 8 17 10
WRDW
23 25 23 20 20 18 19 30 28 46 97 68 40 27 15 31 22 37 24 29 19 12 13 9 16 10
47 53 53 41 42 42 37 67 66 99 214 150 86 59 33 69 48 78 51 65 43 24 32 17 33 20

WJBF- 23 29 31 20 22 23 12 30 35 49 108 77 44 32 18 36 25 38 26 33 23 12 18 7 13 8
WRDW 19 22 22 17 19 14 6 28 26 44 86 66 38 26 15 30 21 34 23 28 20 12 11 7 10 7
42 51 53 37 41 37 18 63 63 93 194 143 82 58 33 66 46 72 49 61 43 24 29 14 23 15

WJBF
23 26 23 13 14 25 10 29 33 49 103 75 46 33 18 38 27 40 27 29 21 11 19 9 10 7
WRDW 17 19 22 16 17 8 4 25 25 39 69 58 34 24 15 28 20 31 21 25 18 11 7 4 4 3
40 45 45 29 31 33 14 57 58 88 172 133 80 57 33 66 47 71 48 54 39 22 26 13 14 10

WJBF 24 26 24 14 15 20 9 29 31 49 92 70 47 31 16 41 27 42 26 23 16 9 15 8 8 7
WRDW

9 8 9 7 6 5 17 17 27 44 38 22 14 10 17 11 21 13 17 12 8 4 2 2 1
33 34 33 21 21 25 9 47 48 76 136 108 69 45 26 58 38 63 39 40 28 17 19 10 10 8

WJBF
11 9 3 8 8 7 22 23 37 63 51 34 21 10 30 18 30 17 17 12 6 9 5 4 3
WRDW 5 4 5 3 3 3 1 10 12 16 23 20 12 6 4 10 5 12 5 8 5 3 2 2 1 1
16 13 8 11 11 10 1 33 35 53 86 71 46 27 14 40 23 42 22 25 17 9 11 7 5 4
11.15P -
WJBF 9 8 2 7 7 6 14 14 21 31 27 17 9 2 15 8 15 8 10 7 3 4 3
WRDW 5 4 5 2 1 1 8 12 12 15 13 9 4 3 8 4 8 3 5 3 1 1 1 1 1
14 12 7 10 9 7 1 23 26 33 46 40 26 13 5 23 12 23 11 15 10 4 5 4 1 1
11.30P -
WJBF

6 5 1 4 5 4 11 12 17 23 20 13 7 1 12 6 12 6 7 6 3 4 3
WRDW 5 3 4 4 5 2 1 8 11 11 14 13 8 4 3 7 3 8 4 5 3 1 1 1 1 1
11 8 5 8 10 6 1 20 23 28 37 33 21 11 4 19 9 20 10 12 9 4 5 4 1 1

WJBF
5 4 1 3 4 4 9 10 13 16 13 9 4 9 4 9 4 5 4 2 3 2
WROW 4 3 4 4 4 2 1 7 11 11 15 14 8 4 3 7 3 8 4 6 4 2 1 1
9 7 5 7 8 6 1 17 20 24 31 27 17 8 3 16 7 17 8 8 4
11 4 3

WJBF 4 4 1 2 3 3 7 8 11 12 10 7 4 7 4 7 4 3 3 2 3 2
WRDW 4 3 4 4 5 1 1 7 11 10 13 13 7 3 2 6 2 7 3 6 5 3 1 1
8 7 5 6 8 4 1 15 18 21 25 23 14 7 2 13 6 14 7 9 8 5 4 3
12.15A - 12. 30 A
WJBF 4 4 1 2 3 3 6 6 8 9 7 5 3 5 3 6 3 2 2 1 2 2
WROW 4 3 4 4 5 1 1 7 11 10 12 12 6 3 2 5 2 7 3 6 5 3
8 7 5 6 8 4 1 13 16 18 21 19 11 6 2 10 5 13 6 8 7 4 2 2
12.30A - 1 2.4 5 A
WJBF 4 4 1 2 3 3 5 5 7 9 7 5 3 4 3 5 3 2 2 1 2 2
WRDW 4 3 4 4 5 1 1 7 10 10 12 12 6 3 2 5 2 6 3 6 5 3
8 7 5 6 8 4 1 12 15 17 21 19 11 6 2 9 5 6 8 7
11 4 2 2
1 . 00A
WJBF 3 3 1 2 3 3 5 5 7 9 7 5 3 4 3 5 3 2 2 1 2 2
WRDW 4 3 4 4 5 1 1 6 10 9 12 12 6 3 2 5 2 6 3 6 5 3
7 6 5 6 8 4 1 12 15 16 21 19 11 6 9 5 6
2 11 8 7 4 2 2

tTECHNICAL DIFFICULTY + PARENT/SATELLITE RELATIONSHIP

TUESDAY FEB/MARCH 1972 PAGE 17

Courtesy, American Research Bureau

A Spot Buying Guide

This shows the type of demographic information available to advertisers in buying

spot television. Such reports are prepared for cities across the country; this one was
for Atlanta.

152
 The Syndicated Research Services 153
Using
Television
A number of research firms specialize in gathering such information
on a syndicated basis, which means that at their own expense (which is con¬
siderable), they gather audience viewing data all over the country, covering
all markets, and publishing it. Then they sell the reports on an annual sub¬
scription basis. These serve as the basis for making media plans. These re¬
ports include the Nielsen Station Index (NSI), the Nielsen TV Local market
reports; the American Research Bureau (ARB), ARB TV Local market re¬
ports, and the ARB Radio market reports. The Pulse is prominent for its re¬
ports in the radio field. The Simmons Reports go into the demographic study
of TV audiences and also of magazine readers.

Principles of Audience Research

All audience research is based on established principles of sampling,

culling from a carefully planned sample of the total audience information that
can then be extrapolated to a larger audience. There are three principal means
of getting this information:

1. The telephone coincidental method

2. The diary method
3. Mechanical recorder

1. The telephone coincidental method. By this method, a preselected

sampling of people is called up and asked, "Do you have a television set?
How many members of the family are watching it? What channels? What
programs?” The advantages of this method are that it gets the information
quickly and directly. The disadvantages are that the questions must be brief,
that people might not be at home to answer the phone, and that one cannot
call too early in the morning or too late at night. Nevertheless, it represents
the most widely used method of television audience research.

2. The diary method. The diary is a notebook, kept next to the

television set, in which members of a family can record the stations and pro¬
grams they watch; they can also tell something about themselves as consumers.
The research firms must arrange to get the cooperation of various families
with a carefully planned sampling pattern; there is a fee in payment. These
diaries are then returned to the research firm and tabulated. 1 he advantage
of the diary is that it covers all broadcast hours, it covers all members of a
family, and it can include information about the listener as requested. Ihere
is always a question of the validity of self-filled-out records, but research
companies have developed various statistical techniques for spotting and
meeting this problem.
 154 Write in
Media Place a 1 in NUMBER
Write in Write in column for of OTHERS
When set When set CALL LETTERS NAMES OF MAN OF HOUSE watching TV—
is OFF is ON & CHANNEL NOS. PROGRAMS and/or Men
draw line put an X of stations watched while LADY OF HOUSE Women
down OFF in ON tuned in tuned to if watching Teens (T)
column column over 5 minutes each station when TV is on Children (C)

SET STATION PERSONS WATCHING TV

TIME
USE TUNED IN
NAME OF Men Women T c
0
QUARTER- 0 CALL CHAN. PROGRAM WATCHED Man Others Lady Others 12 2
HOURS
F
F
N LETTERS NO. of Over of Over Thru Thru
House 17 House 17 17 11

12:00-12:14
2\
12:15-12:29
2?

12:30-12:44
2*

12:45-12:59

1:00- 1:14
X W 63 B 5 StAr S havAouse. / /
1:15- 1:29 VJ
30 Movie - The Crliis r 2
1:30- 1:44 *
31 _
1:45- 1:59 32

2:00- 2:14
33 } :
2:15- 2:29 34 W BB& 5 1
~1
n2
2:30- 2:44 35
X KAAA 9 KAAA- Neu/s Extra, / /

2:45- 2:59 31

3:00- 3:14
3

3:15- 3:29

3:30- 3:44 39 MBB 5 Lucky 7 Quit. Show / / 2

3:45- 3:59 40 WBB8 5 1 / / 2
4:00- 4:14
A
4:15- 4:29
'

4:30- 4:44 4:

4:45- 4:59
4

5:00- 5:14 4! 1,

5:15- 5:29 4<

5:30- 5:44 4

5:45- 5:59 4

Comments:

A Page from a TV Diary (Courtesy, A. C. Nielsen Company)

 3. Mechanical recorder. A mechanical recorder is a device affixed to 155
the television set, with the consent of the set owner, automatically registering Television

when the set is turned on. (Nielsen calls their device the Audimeter; ARB
calls theirs Arbitron.) Reports can be mailed in weekly. These recorders can
also be hooked up by direct wire to the research bureau’s recording center for
overnight reports to the advertiser. The advantages of recorders are that they
are continuous, they are not subject to human error in keeping records, and
they give information swiftly. The disadvantage of the recorder is that the
system is costly to install and maintain (especially the instantaneous records,
which are, at this writing, operated only in New York City and Los Angeles,
although additional cities may be added to the list). Also, the recorder tells
when the set is turned on; but it does not tell who or how many are listening.
Despite this, the information is useful to many advertisers.
The recorder in one market is often used in connection with diary or
coincidental telephone reports in the same market, and with diary or coinci¬
dental telephone reports in other markets where a network program is being
measured.
The audience rating services have been at the forefront in developing
techniques to give better information, and are continually working to improve
them.

A Nielsen Audimeter

Arrangements are made to have this

hooked up in homes of a carefully
selected sample of households. It
records on tape when the set was in
operation. The respondent sends in
the tape weekly. The Audimeter is
often used in connection with diary
reporting by others in the area.

Courtesy, A. C. Nielsen Company

 136 Audience-Measurement Terms
Media

It would be well to be acquainted with the terms used in audience-

measurement research and calculation. Roth presents them this way:

A. TV penetration
Start with a theoretical "universe” ... 10 households. 9 of
these 10 households own TV sets; TV penetration or set owner¬
ship in "universe” = 90 percent.
B. Coverage
The TV signal of a theoretical network covers 8 TV households.
The coverage area, therefore, is defined as: 8 out of 9 TV house¬
holds in the universe = 89 percent coverage.
C. Sets-in-use
At 9-10 p.m., 6 TV households are watching TV = sets-in-use.
6 out of 9 TV households in the universe = 67 percent sets-in-
use.
D. Share of Audience
At 9-10 P.M., 2 TV households are watching our program: 2
out of the 6 with TV sets in use. Our share of audience is thus
33 lA percent.
E. Rating
At 9-10 P.M., 2 TV households are watching our program = rat¬
ing. 2 out of 9 TV households in the universe = 22 percent,
spoken of as a rating of 22. A rating point, therefore, is one
percent of all the households who have TV and are tuned into
our program.8

Ratings are the units most used in planning schedules.

Gross Rating Points (GRPs)

Media schedules are often spoken of as "light” or "heavy,” attributing

to the schedules a sense of weight, or impact, on a market. To translate that
feeling into mathematical form useful in planning media schedules, the Gross
Rating Point (GRP) system has been evolved. One rating point represents
1 percent of the total TV households reached within a specified measurement
area as defined by the rating service used. It applies also to radio, where the
rating service also estimates the number of persons using radio.
A gross rating point is the rating a program gets, multiplied by the
number of times the program is played. Usually this is figured over a four-
week period. Thus, if a commercial ran on a program with a rating of 10

8 Paul M. Roth, How to Plan Media (Skokie, Ill.: Standard Rate & Data Service,
Inc., 1969), Chap. 4.
once a week for four weeks, it would have a GRP of 40. If it also ran four 157
Using
times on another program with a rating of 8, it would have a GRP of 40 + 32, Television
or 72.
One of the principal merits of the GRP system is that it provides a
common base that accommodates all size markets equally. One GRP in New
York has exactly the same relative weight as one GRP in Salt Lake City.
The cost for time, of course, varies by the city. The cost per rating
point in different cities has been worked out, and the following list is typical:

30 Secs. Prime-time Cost

City Per Rating Point

New York $225

Los Angeles 150
Washington 55
Atlanta 20
San Diego 13
Columbus, Ohio 14
Salt Lake City 6

The advertiser has to make a decision as to how much weight, or

GRPs, he wishes to place in his markets, and for how long a period. This will
be a uniform number of GRPs, for in each market it means he reaches the
same proportion of TV households. Say he selects 100 to 150 per week as his
GRP figure (considered a good working base). This still gives him great dis¬
cretion in each market as to how to allocate the time: put it all on one station?
divide it among all the stations? with what yardstick? This depends on whether
he wants to reach as many people as possible with his message (called reach),
or whether he wishes to reach people more often (frequency)—in which case
he will have to limit himself to fewer people or to shorter messages (perhaps
10 seconds instead of 30 or 60 seconds). In all instances, delivery of a mes¬
sage is the important thing, not just reaching people. (In the next chapter
we will see how the computer is used to present the various alternatives pos¬
sible with a given number of GRPs.)
Important though the GRP is, however, it has its limitations: Con¬
sideration must be given to the number of prospects for the product that are
being reached by a program, regardless of rating. But the GRP concept pro¬
vides a unified dimension for making scheduling judgments.
Additionally, GRPs alone cannot tell how effectively a broadcast
schedule is performing. If an advertiser’s target audience is women aged 18
to 49, for example, it is often the case that five GRPs will deliver more
women 18-49 for the advertiser than will ten GRPs. This, as would be sus¬
pected, is a function of where the GRPs are scheduled. Five GRPs scheduled
in a "Sunday Night Movie" will almost always deliver many times more
women 18-49 than will ten GRPs scheduled on a Saturday morning.
 158 One would logically suspect that over the years, standard criteria had
Media
developed as to how many GRPs were needed for each market. Advertiser
needs being as diverse and varied as they are, however, this is not as yet gen¬
erally the case.
One method that appears well received among advertisers whose
products have wide appeal (such as packaged goods) is arbitrarily to deter¬
mine the number of GRPs required to make an impact on a market. If the
budget can then not accommodate the cost of providing this number of
GRPs, the schedule may be further refined as to the desirable level of fre¬
quency. Here, too, the budget must be reexamined as to how many additional
dollars, if any, will be required to beef up frequency to this desired level.

Cumes

A came represents the accumulated number of people who have been

exposed to a commercial that ran more than once—usually figured, for con¬
venience, over a four-week period. Say a commercial runs on a station three
times a week for a four-week period. It reaches 10,000 viewers each time it
appears. That does not mean that it has reached 120,000 people, for every
time it appeared, some of the previous watchers were not watching, and some
new viewers joined the audience. The actual cume of an audience is computed
bv the audience-measurement services, based on research and statistical ex-
perience, and is available to the advertiser. The cume, in the instance above, is
figured at 15,000, which means that 15,000 different households listened to
that program over a four-week period.

Defining Television Markets

Publishers have always reported their circulation by states—the traditional

boundaries for sales territories—but for television something better was
needed to define territories in terms of the stations that best reached them.
As a result, two of the major audience-measurement services have each pre¬
pared such maps, based upon the reach of stations around markets. These
include those counties that account for 95 percent or more of a station’s
audience. The A. C. Nielsen Company (Nielsen) calls its territorial loca¬
tions Designated Marketing Areas (DMA). The American Research Bureau
calls its maps Areas of Dominant Influence (ADI)—"an exclusive geo¬
graphic area consisting of all counties in which the Home Market stations
receive a preponderance of total viewing hours.” Many marketing plans are
made in accordance with these territorial designations.
The Basic TV Plan 159
Using
Television
TV schedules are made out in terms of weeks (Sunday to Saturday), not
months. A program for a seriesofweeksis-ref erred to. as. a.flight.
In planning the use of television in a market, we ask a series of ques¬
tions, including:

1. What is the budget? How does it compare with that of the com¬
petition?
2. What geographical area (DMA or ADI) do we want to cover?
Over what period of time?
3. What audience do we want to reach? Sex? Age? Other qualifica¬
tions, as large families, homeowners?
4. What is the weight in GRP’s we want for a market (four-week
plan) ?
5. What is the relative importance of: reach—getting the message
before as many people as possible; frequency—getting the message
before the same group as often as possible; continuity—maintain¬
ing message delivery over a long period of time?
6. How can TV best supplement, or be supplemented by, other
media?

The network buying plan. If the plan indicates the possible use of
networks, we inquire:

1. What are the availabilities of each network? What programs?

2. How many people do they reach?
3. How does the lineup of stations in the network correspond to the
markets in which we are most interested? How much supplementary
scheduling will have to be done?
4. What is the share of market of the individual station in its re¬
spective market?
5. What is the cost per thousand viewers?
6. What is offered by way of product protection? Promotions? Other
features?

Network programs must be planned well in advance—often a year

ahead.

The spot buying plan. If our plan calls for spot, we check individual
stations for:
 160 1. Station’s reach—What is its prime listening area?
Media
2. Share of audience—Of all homes using television in the market,
how is the share of audience distributed among stations being
considered?
3. What are the station ratings, by quarter-hour periods?
4. Programming environment—How does the audience watching
the program mesh with the demographic requirements of the audi¬
ence we are seeking?
5. Length of schedule (flight)—How many weeks are planned?
6. Cost—What is the best deal that can be worked out to get the
spots we want at the least cost?
7. Other criteria—What is the station’s history of reliability in
handling spots, product protection, and make-goods?

These are among the considerations in making a television spot schedule.

UHF (Ultrahigh-frequency) Stations

As you cast your eyes over the accompanying chart of the electromagnetic
spectrum through which all electronic communication by air takes place, you
will see that television and radio are only two of many claimants for fre¬
quency allocations. They have competition from other users. When television
came along, the Federal Communications Commission (FCC), which is the
responsible government authority, assigned to it what were then the best
available channels, now known as Channels 2 through 13. These twelve chan¬
nels are in the very-high-frequency band of the spectrum, and are referred to
as VHF stations. Today they are the basic TV stations we get on the air.
But the demand for more television frequencies grew faster than had
been anticipated. The FCC did not want to repeat its mistake of not allowing
room for expansion. This time, they leapfrogged into the ultrahigh-frequency
band, where they made room for 70 channels—channels 14 to 83, referred to
as UHF. But it takes a different type of receiving set to tune in on these
channels. Since May 1965, by law, all new TV sets have had to be capable
of receiving UHF as well as VHF.
UHF stations usually offer programs of selective quality to attract
specific audiences, rather than trying to compete with the entertainment fare
of local stations. They are very popular in the Middle West.
Within five years, from 1965 to 1970, the number of UHF stations
in the United States doubled, from 88 to 176.
 |i|
2900 Me

Radio Navigation
Meteorological (Radiosonde)
Radar

1300 Me

1000 Me
890 Me

UHF TELEVISION (CHANNELS 14-83)

470 Me

!®1 i ■
l||l#
:
lx,III •.

216 Me ■Hi
VHF TELEVISION (CHANNELS 7-13)
174 Me

118 Me
Radio Navigation
108 Me
The Electromagnetic 100 Me FM BROADCAST
88 Me
Spectrum
VHF TELEVISION (CHANNELS 2-6)

Showing how frequencies are allo¬ 54 Me

45 Me
cated for different purposes by the
FCC. This chart is not in mathe¬
matical scale (no room), but in Land transportation
logarithmic scale. To get an idea Police
of how much of the spectrum is as¬ Industrial, Medical, Scientific
signed to AM and FM radio, and Maritime Mobile
to VHF and UHF television, judge )► International Broadcast
10 Me I
by the small (megacycle) numbers Maritime Mobile
left of the bar. Amateur

Standard Frequency (time)

Aeronautical Mobile

V AM BROADCAST

535 Kc
415 Kc-|

Radio Direction Finding

Aeronautical Mobile
Aeronautical Radio Navigation
Radio Navigation
0.1 Me—i
90 Kc-1
 162 CATV; Cable Television
Media
r

CATV stands for community antenna television, also known as cable tele¬
vision. It is a paid subscriber system whereby one antenna serves a community
of households that cannot get reception, or else get only poor reception, be¬
cause of interference of the surroundings. It began in the mountains of
Pennsylvania, to bring television reception to homes from which it had been
blocked by those mountains. CATV spread to the cities, where residents were
beset by the same problems owing to the steel structures or the hills that
surrounded them. The lines, or cables, by which subscribers are connected
are strung either on the telephone or light poles by leasehold arrangement,
or carried through conduits in the cities.9 An important feature of CATV
is that its reception is far better than that of direct transmission, because
the height of the aerial puts it above electronic disturbances from many sources.

A Short Course in Cable

That’s the title of a report in Broadcasting magazine which said:

There are about 2,750 operating cable systems in the U.S. There are
another 1,950 systems approved but not built, and 2,900 applications
pending before local governments. Pennsylvania, where cable began,
has the most systems: about 300. Systems currently in operation
reach about 6 million homes, perhaps 18.5 million viewers. The

9 As this is being written, a mini-laser system has been announced to do away with
wires or cables—a cableless cable system!

When the local systems operator originates a broadcast to subscribers via cable, it is called cable television.
0% §35 M. !&
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V- .

Off

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Sep 26 Buffalo (pre-season) 40 home games vs. Sep 25 Boston (pre-season) Oct 7 Atlanta Sep 16 Rhode Island National Horse Show
& Phil, vs Boston Carolina Oct 2 Montreal (pre-season) Oct 12 Los Angeles Sep 30 Fordham (opening mght)
Oct 3 Boston (pre-season) Dallas Oct 11 Vancouver Oct 14 Boston Oct 7 Pnnceton Nov 27 Wrestling
& Balt.vs Cleveland Denver Oct 15 Minnesota Oct 17 St. Louis Oct 14 Harvard Dec 20 EC AC Holiday Fes¬
Oct 10 Seattle Indiana Oct 18 Boston Oct 21 N.Y. Rangers Oct 21 Yale tival Hockey (Finals)
Oct 14 Los Angeles Kentucky Oct 22 Montreal Oct 24 Montreal Oct 28 Rutgers Millrose Track Meet
Oct 17 Houston Memphis Oct 25 Philadelphia Oct 28 Chicago Nov 4 Cornell Golden Gloves
Oct 21 Philadelphia San Diego Oct 29 Chicago Nov 14 Montreal Nov 11 Dartmouth Westminster Kennel
Oct 24 Cleveland Utah Nov 8 Vancouver Nov 18 Boston Nov 18 Penn Dog Show (Finals)
Oct 28 Baltimore Virginia Nov 11 California Nov 21 California Nov 25 Brown NYC PSAL High
Nov 9 Atlanta (dates to be announced) Nov 12 Los Angeles Nov 28 Buffalo School Basketball
Nov 11 Golden State Nov 15 Philadelphia Dec 2 Buffalo (Semi-Finals)
Nov 14 Phoenix Nov 19 Pittsburgh Dec 5 Los Angeles Mar 11 NYC PSAL High
Nov 16 Houston Nov 26 Toronto Dec 9 N.Y. Rangers School Basketball
Nov 18 Milwaukee Dec 3 Atlanta Dec 12 Pittsburgh (Finals)
Nov 21 Portland Dec 6 Buffalo Dec 16 Philadelphia Mar 16 Golden Gloves(Finals)
Nov 25 Boston Dec 10 N Y. Islanders Dec 21 Vancouver Mar 17 NIT Basketball
Nov 28 Cleveland Dec 17 Pittsburgh Dec 23 Minnesota Mar 19 NIT Basketball
Dec 2 Buffalo Dec 21 Atlanta Jan 2 Pittsburgh Mar 20 NIT Basketball
Dec 5 Kansas City Dec 24 Detroit Jan 6 Detroit Mar 22 NIT Basketball
Dec 9 Philadelphia Dec 27 Buffalo Jan 9 Los Angeles
Dec 12 Atlanta Dec 31 St. Louis Jan 14 St. Louis
Dec 16 Chicago Jan 3 Los Angeles Jan 16 Buffalo
Dec 25 Detroit (World Hockey Association Jan 6 Buffalo Jan 23 California Dec 2 CCNY ■ Special focus on com¬
Dec 28 Buffalo Jan 7 Pittsburgh Feb 1 Chicago Dec 16 Connecticut munity events through
at the Garden)
Dec 30 Baltimore Jan 24 Boston Feb 3 IMinnesota Jan 13 Cornell neighborhood news and
Oct 19 Cleveland
Ian 2 Milwaukee Jan 28 Toronto Feb 6 Toronto Jan 25 Lafayette Public Access Channels.
Nov 22 New England
Ian 6 Houston Jan 31 California Feb 10 N.Y. Rangers Feb 2 Dartmouth ■ For the kids "Leslie The
Jan 1 Philadelphia
Ian 25 Buffalo Feb 4 Atlanta Feb 20 Atlanta Feb 3 Harvard Shrevel’ "The Science Game’.’
Feb 21 Alberta Detroit
Ian 27 Boston Feb 7 N.Y. Islanders Feb 24 Feb 16 Pnnceton ■ Spanish language programs
Mar 10 Winnipeg Feb 27 Chicago
Ian 29 Golden State Feb 18 N.Y. Islanders Feb 17 Penn and newswire direct from
Feb 3 Cleveland Feb 25 Minnesota Mar 3 Vancouver Mar 2 Brown San Juan.
Feb 6 Ixis Angeles Feb 28 Chicago Mar 6 Montreal Mar 3 Yale ■ AP newswire, stock list¬
Feb 10 Detroit Mar 4 Vancouver Mar 8 Toronto ings and weather reports.
Feb 14 Chicago Mar 7 Philadelphia Mar 13 Boston ■ All the regular programs on
Feb 17 Philadelphia Mar 18 St. Louis Mar 17 St. Louis all TV stations, including UHF.
Feb 20 Portland Mar 25 Minnesota Mar 20 California ■ A special channel listing
Feb 24 Buffalo Mar 28 Boston Mar 24 Philadelphia all programs on all New York
Feb 27 Boston Apr 1 Detroit Mar 27 Buffalo TV stations, all day long.
Mar 3 Baltimore ■ Uninterrupted modern and
Mar 6 Seattle classical music, all day long.
Mar 10 Kansas City ■ Enjoy TelePrompTer
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Mar 21 Atlanta reception and color.
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Cable TV Moves Ahead

Providing programs on its own channels, in addition to those from other stations
 164 average system has 2,150 subscribers. The largest—in San Diego—has
Media
over 51,000. Some have fewer than 100. Most systems offer between
6 and 12 channels; the average for all is 10.4. Most new systems
being constructed have 20 channels. The state-of-the-art maxi¬
mum is about 48 forward channels. Monthly fees average about
$4.95. Installation fees range from nothing to over $100; the average
is $20. Total cost of an average system is estimated between $500,000
and $1 million. The cost of laying cable ranges from $4,000 per mile
in rural areas to more than $50,000 per mile in large cities. Over 400
systems have the capability of originating programs, and nearly 300
do so on a regularly scheduled basis—an average of 16 hours a week.
Almost 800 have the capability of providing such automated origina¬
tions as time and weather services and stock reports. Advertising is
known to be carried by 53 systems which originate programs. Another
375 accept advertising with automated services. The average charge
is $15 per minute, $88 per hour-long program. About 42% of the
cable industry is owned by other communications interests. Broad¬
casters account for 30%, newspaper publishers for 7%, telephone
companies for 5%. The CATV industry had total subscriber revenues
estimated at $360 million in 1971.10

The original role of CATV was to relay to subscribers via cable the
programs of stations it could receive over the air. But the stations could also
be turned into local sending stations by playing their own programs over their
cables to their subscribers (called cablecasting). In fact, the Federal Communi¬
cations Commission now requires all systems with 3,500 subscribers or more
to broadcast their own programs along with those received over the air. The
philosophy of this is to encourage the opening of the many channels of CATV
to community-oriented programs.

Two-way Cable Communication

The biggest change cable television promises to bring to our society

is through its facility for having two-way communication between the sub¬
scriber and the station, by means of a double cable. The FCC reports:

Cable operators foresee their systems developing into two-way home

communications centers through which subscribers may shop for
merchandise shown on their screens, order facsimile newspapers, or
have utility meters read. These and other potential uses of CATV are
still being explored.* 11

10 Broadcasting, May 15, 1972. © Reproduced by permission, Broadcasting Publi¬

cations, Inc.
11 Community Antenna Television (CATV), Federal Communications Commission,
22-0, November 1970.
Satellite Television 165
Using
T elevision
In 1965, the first communications satellite—the Early Bird—provided direct
communication between North America and Europe. It was a synchronous
satellite, in that it rotated around the earth, at 22,550 miles above the equator,
at the same rate as the earth; it was "geostationary.” It served as a relay, trans¬
mitting its message in a straight line of vision one-third the way around the
earth.
In 1970, there were five synchronous satellites providing full-time
global service, with 40,earth stations located in 28 countries to receive and to
relay their messages. (They also act as relays for telephonic messages.) They
cover Europe, Africa, the Near East, Latin America, and countries in the
Pacific. The United States has seven satellite earth stations. In 1970, 947
hours of television time were transmitted or received in the United States.12
These were news events of wide importance; they would be received by the
satellite earth station, transmitted to the networks, and rebroadcast, with time
sold at the end.
The biggest impact of satellites in the United States is still ahead.13
We soon may expect three domestic satellites capable of transmitting from
coast to coast without relays or lines, potentially changing the entire system
of television communication methods.

Trends in Television

Between I960 and 1970, expenditures for television advertising grew by 130
percent—making it the fastest-growing of all media.14 In 1972, the U.S. De¬
partment of Justice filed an antitrust suit against the three networks, designed
to sever their control of the production of shows from the broadcasting opera¬
tion. The fact that the networks financed and produced these shows, which
cost far more than a single advertiser might care to invest, has been one of
their chief contributions to making network television viable. The suit may
take years to adjudicate. Should the views of the Department of Justice pre¬
vail, there will be a great reorientation of network broadcasting.
Meanwhile, improvements in videotape recordings, and reduction
in their cost, will permit an increasing amount of the programming now on
networks to be handled directly by the local stations. A strength of the net¬
works will continue to be in their news programming.

12 Federal Communications Commission, Annual Report, 1970.

13 There are TV stations called satellites that have nothing to do with objects in
orbit. A satellite station is a smaller station connected by tie line to a larger one whose tele¬
casts it can transmit.
14 See p. 121.
 166 The biggest change within TV will be brought about by cable tele¬
Media
vision, which could affect all media. To the public it represents an expanded
form of service; to the advertiser it represents a possibility for better market
targets, and also more audience fragmentation. There is much political pres¬
sure and financial turmoil taking place regarding the control of these stations
and the range of services they will be allowed or required to render, reminiscent
of the problems radio and TV had in getting established.

Will cable television develop into a mere conduit for over-the-air

broadcast signals, or will it assume the competitive position of an
alternate medium of communication?
—FCC Chairman Dean Burch, in Broadcasting
Magazine, May 22, 1972, p. 22.

The advent of television cassettes, by means of which people can play

their own choice of movies or old TV shows from cartridges they can buy or
rent, can have an impact on TV viewing.
Domestic satellite broadcasting promises to affect the entire method
of station intercommunication. It may transmit directly to the home—in time.
Three problems wait to be resolved: mounting costs, clutter, and
paper work on schedules. These wouldn’t be so important if television were
not so important.
jt.
TV* W '7V

We will discuss the creation and production of television commer¬

cials in the next section of this book. Meanwhile, we continue the discussion
of media.
 167
Using
Television

Alpo Dog Food

A case report on the use of television

by James V. O’Gara

Robert F. HunsickeR, who started the Alpo Dog Food Company in 1936,
in a rented garage, on a $200 bankroll, tells the story:

In 1959, we knew that only one out of every four households had a
dog. We also knew that most of these dogs were in the suburbs, so
we were after people with some money to spend on a product that
cost more than the others.
Spot TV could offer good selectivity and flexibility. The cost was
moderate. Pets, like babies, are a "natural” for viewer involvement.
Our Alpo selling idea of 100% meat, no cereal filler, was well
suited for demonstration. And television could be effectively used to
sell supermarket chain buyers.

Alpo put 61 percent of its ad budget into daytime and fringe-time

newscasts, personality shows, and spots in and around shows geared to dog-
owning audiences. In I960, sales increased by 30 percent, by 36 percent in
1961, and by 47 percent, in 1962. These spectacular gains were registered
while pet industry sales as a whole were advancing about 5 percent annually.
In 1964, when Alpo still lacked national distribution, it bought into
the "Today” and "Tonight” shows. The result was a 40 percent sales increase
and the opening of a number of new markets. Then Alpo bought spots on all
three networks, backing them with heavy local spot drives. By this time, 90
percent of the Alpo ad budget was going into TV.
When the smoke cleared,” according to Mr. Hunsicker, "dogs were
eating Alpo in all fifty states. Our total sales gain, over the past five years,
climbed to 510 percent—while all pet-food sales had gone up 60 percent.”
In the ten years beginning in 1959, Alpo sales dollars increased about 1,500
percent, and its total advertising dollars were ahead about 1,400 percent.
Today, 80 percent of the $8,000,000 Alpo ad budget goes into tele¬
vision, including "Today” and "Tonight,” nighttime westerns, news broad¬
casts, and daytime serials like "The Doctors” and "Secret Storm.” In one
recent quarter, Alpo ran 4,102 spots in 36 markets, 375 commercials on na¬
tional programs, and 167 regional spots. Sales for the period were up 21 per¬
cent over the corresponding quarter in the previous year.

Excerpted from a report by James V. O’Gara, from the May 10, 1971 issue of
Advertising Age. Reprinted with permission. Copyright 1971 by Crain Communications, Inc.
 168 Review Questions
Media

1. What are the chief advantages of 9. Describe the telephone coincidental,

television for the national adver¬ diary, and mechanical recorder
tiser? Its chief limitations? methods of television audience re¬
search. What are the advantages and
2. What is network TV? Spot TV?
limitations of each?
Local TV?

3. What are the advantages and limi¬ 10. What do the following terms mean?
tations of network TV ? Spot TV ? a. TV penetration
b. coverage
4. When an advertiser wishes to go on c. sets-in-use
a network program, he has a choice d. share of audience
of three buying formats. What are e. rating
they? f. cume
5. What is a scatter plan? What is a
11. What are the chief questions you
package of participations?
would ask in (a) buying network
6. What is the difference between spot TV and (b) in buying spot TV?
television and a television spot?
12. What is cable TV? What is cable-
7. Why does a station have different
casting?
time classifications? How do their
rates compare?
13. For Alpo Dog Food, what were the
8. When an advertiser is concerned advantages of television generally?
with the product protection offered Of network TV in 1964? Of net¬
by a station, what does he mean? work TV in 1970?

Reading Suggestions

Advertising Age, "Broadcast Advertis¬ Friendly, Fred W., "Television and the
ing: 1970," a special section, Novem¬ First Amendment," Saturday Review,
ber 2, 1970, p. 19ff. January 8, 1972, pp. 46—47ff.

Barton, Roger, The Handbook of Ad¬ Hoffman, Robert M., "Awareness

vertising Management. New York: Change in TV," Media/Scope, May
McGraw-Hill Book Company, 1970. 1968. Excerpted in Kleppner and
Settel, Exploring Advertising, p. 202.
Blank, David M., "Television Advertis¬
Lessing, Lawrence, "Stand By for the
ing: The Great Discount Illusion, or
Cartridge TV Explosion," Fortune,
Tonypandy Revisited,” The journal
June 1971, p. 8Iff.
of Business, January 1968, pp. 10-38.
Mayer, Martin, About Television. New
Everson, George, The Story of Televi¬ York: Harper & Row Publishers,
sion. New York: W. W. Norton, 1972.
1949. Thompson, T., "How a Network Boss
Forbes, "TV: Is the Bloom Off the Old Picks Shows," Life, September 10,
Rose?" October 15, 1970, p. 28ff. 1971, pp. 46-50ff.
 8
Using Radio

Radio has been called the ubiquitous medium—it seems to be everywhere.

There are over 336 million radio sets in the United States; that’s five per
household, including plug-in sets, car sets, portable transistors, sets in com¬
bination with phonograph-TV sets, AM-FM combinations, and clock radios.
Ninety-nine percent of all homes have radios. 71 percent have a radio in the
bedroom, 56 percent in the kitchen, 47 percent in the livingroom, 40 percent
in the study or den, 22 percent in the dining area, and 22 percent in the
laundry room. The radio plays in the householder’s workshop, and many a
farmer drives his tractor with a radio slung from its chassis.
Eighty-five million cars have radios. Riders in them listen to the radio
more than 60 percent of the time they are traveling, a figure that peaks up in
the morning and evening trips to and from work; 82 percent of commuters
travel by car.
The radio is the companion on all trips—to the seashore, to the moun¬
tains, and to wherever travel plans take a devotee. Transistor sales alone in
1970 were over $31 million (compared with $11 million in 1962).
In the course of a week, 90 percent of all adults enjoy the programs
coming from 4,500 AM and 2,200 FM stations, planned to serve and enter¬
tain every sector of the population.

Features and Advantages

Radio is a personal medium. When you listen to a voice on the radio,

someone is speaking directly to you in the first person. Many people have
a close rapport with a radio personality to whom they listen faithfully.
Eighty percent of adults rely on radio for weather news; 75 percent of teen¬
agers, 50 percent of adult men, and 56 percent of adult women have transistor
sets for their own use. Nine out of ten listeners rate radio as a source of re¬
laxation and pleasure in their daily lives, to which they can listen as they go
about their chores.1 Radio brings a wide range of sound effects to involve

1 Sources: Radio Facts, Radio Advertising Bureau, 1971; Radio Today, the National
Association of Broadcasters, 1971; Broadcasting 1971 Yearbook.

169
The Earliest Radio Sets

The Aeriola, Jr., got heavy use in the early 1920’s. Rural listeners
particularly turned to their sets for farm information, weather reports,
and even for church services. (From A Pictorial History of Radio,
Irving Settel (New York: Grosset & Dunlap, I960). © Irving Settel,
I960.)
170
the reader’s imagination in the script. You can hear a plane leave the airfield 171
Using Radio
as vividly as if you saw it off. Radio listening goes way up in the summer time,
when people are outdoors.

Radio is broadly selective. An advertiser can pick the markets in

which he is interested. He can reach broad demographic groups, such as
housewives, men, women, teenagers, farmers, ethnic groups, by virtue of the
station programming and by time selection.

Radio is flexible. Time can be bought for a day, a week, a month,

or longer. Many advertisers place orders for short-term schedules (called
flights) several times a year. Orders may even be placed to run when the
weather reaches a certain temperature—cold for antifreeze, hot for soft drinks
—or when the pollen count reaches a certain number, for hay-fever prepara¬
tions.

Limitations and Challenges

There has been a great proliferation of radio stations, with many cities of
under 300,000 population having eight radio stations each. The total number
of radio stations is nine times that of television stations. The audience is highly
fragmented; it may take a number of stations to cover a market. Radio audi¬
ence research is costly and expensive.
Radio is an aural medium. Its use is limited in the case of products
that are sold because of style or appearance. It cannot be used for advertising
requiring coupons.
The chief complaint about radio is that it has too many commercials
per hour. This lessens the impact of all commercials and makes it that much
more difficult to space a commercial away from that of a competing product,
even though stations try to do this. The competition for attention in com¬
mercials, however, has inspired some of the most imaginative writing in the
field of mass communication.
The paper work in putting through a schedule of national radio
spots, as in television, can be quite overwhelming, involving planning, con¬
firming clearances, ordering, checking appearances and make-goods due and
make-goods delivered, approving bills for payment, and billing to clients with
proper credits. The industry is working to simplify this labor.
Yet, with all these drawbacks, radio expenditures grew 84.7 percent
between I960 and 1970 2 compared with an increase for all media of 64.3
percent; radio is a friendly, warm way of delivering a message, at a low cost
per thousand.

2 See p. 121.
 172 Differences Between AM and FM Radio
Media
There are about 4,500 Amplitude Modulation (AM) radio stations, and about
2,200 Frequency Modulation (FM) radio stations.3 Each system offers differ¬
ent values to the advertiser. It’s all a question of waves, and a brief under¬
standing of this subject will help explain many things in radio.

The way of waves. All waves have two attributes. They have height,
spoken of as amplitude, like the difference between an ocean wave and a
ripple in a pond; and they have speed, measured by the frequency with which
a succession of waves pass a given point per minute, or per second. If a radio
station operates on a frequency of 1580 kilocycles, for example, it means that
1,580,000 of its waves pass a given point per second.
Based upon these two dimensions—amplitude and frequency—two
separate systems have been developed for carrying the sound waves. The first
system carries the variations in a sound wave by corresponding variations in its
amplitude; the frequency remains constant. This is the principle of amplitude
modulation (AM).
The second system carries the variations in a sound wave by corre¬
sponding variations in its frequency; the amplitude remains constant. This is
the principle of frequency modulation (FM). These differences affect what
the advertiser can expect from each type of station.
We first discuss AM radio, the most familiar form.

AM Radio

In AM broadcasting, the radio waves are primarily ground waves, which

travel along the surface of the earth and are relatively unaffected by obstacles
or even the earth’s curvature. They lose energy to the ground as they travel,
finally fading out. Good ground-wave reception can extend up to 200 miles,
so that the listening area could be a circle 400 miles in diameter. Certain
antennas, called directional antennas, can be arranged to direct ground waves
to certain areas, to prevent interference.
AM waves also shoot out to the sky (sky waves). They can reach the
ionosphere—the deep curtain of electric particles that surrounds the earth s
atmosphere. In the daytime, the ionosphere has no effect on the AM waves,
but when the sun does down, the ionosphere forms an electronic ceiling that
bounces the AM waves back to earth, landing at a point far removed from
their point of origin. That is why you might receive stations from a thousand
miles away on your AM set at night, but not in the daytime.

3Annual Report, Federal Communications Commission, 1972 (1971 figures).

Amplitude Modulation (AM). Here Frequency Modulation (FM). Here Comparative Sizes
the wave varies in its size (amplitude). the wave varies in its frequency. The of AM and FM
The frequency is constant. size is constant. There are differences Waves
in what AM and FM can do. Scale

20-
Allocation of AM stations. To make the best use, without inter¬
ference, of the frequencies within the limited confines of the AM band (535
kc. to 1605 kc.), the Federal Communications Commission established four
classes of stations:

Class I—clear channel, 50,000 watts (maximum power AM radio)

(These are the giant stations, able to send skywaves at
night.)
Class II—clear channel, 250 to 50,000 watts
Class III—regional channel, 500 to 5,000 watts
A regional-channel station shares its frequency with other
stations far enough away so as not to interfere.
Class IV—local channel, 1,000 watts maximum daytime to 250 watts
at night, sharing their frequencies with distant local
stations.

Most stations are in Classes III and IV. Almost half operate during daytime
only, to prevent nighttime interference.

AM FM

The Structure of Radio Advertising

Radio time is sold in three broad categories—network, spot, and local—

like television time, but the percentages are different. In radio, networks, do
approximately 4 percent of the business, spots 29 percent, local 67 percent.4

Radio Networks

The three national AM radio networks are CBS, NBC, and ABC.
Each offers a long list of stations with which it is, or can be, interconnected,
in combinations designed to reach all parts of the country, and flexible

4Ibid.

173
 enough to meet the advertiser’s marketing map, at a low cost
per thousand. About two thirds of network radio program¬
ming is worldwide news and information; one third is for
entertainment programs, chiefly daytime, for the audience of
housewives. The network commercials appear within the
total network time period assigned to the network by the
stations.
There are also regional and state networks, intercon¬
nected but not part of a national network. Many separate sta¬
tions are sold as a group, sometimes called a transcription net¬
work, on a one-order, one-bill basis.
Radio Time Sales

Spot Radio

When an advertiser buys time on an individual station, the usage is

called spot radio. The program originates at the station from which it is
broadcast; that is, it is not relayed from a network broadcast. As in television,
when a national advertiser uses spot radio, it is, strictly speaking, national
spot radio; however, by trade custom it is called simply spot radio. Similarly,
when a local advertiser uses spot radio, it is, strictly speaking, local spot radio;
but by trade custom it is referred to as local radio. (We discuss local radio in
the Retailing chapter.)
Spot radio represents the height of radio flexibility. An advertiser
has about 6,500 stations from which to tailor his choice to fit his markets.
He can go on as often as he wants, for as long or short a flight as he wants.
The schedule can be pinpointed to the weather (for antifreeze), to the pollen
count (for hay-fever preparations), or to the season (for gift suggestions).
Spot radio is often used to amplify the reach and frequency of a
campaign running in radio network, newspapers, television, magazines, and / or
outdoor advertising.
Many stations have programs directed to the farm markets; others are
directed primarily to black or Spanish audiences. Over 500 stations broadcast
in 58 different languages to reach the various ethnic groups.5
An advertiser can move fast with spot radio. Although some stations
ask for two weeks closing, most specify 72 hours closing for broadcast ma¬
terials. When asked his closing time, one candid station manager replied,
"Thirty minutes before broadcast!"

5 Standard Rate & Data Service, September 1972.

 THE RADIO STRUCTURE

Time Classifications

The broadcast day is divided into time periods, whose rates reflect the size
of their audience. These periods generally are:

Name Time Index of Cost

Drive or Traffic time 6-10 A.M. 100

Daytime, or Housewife 10 a.m.-3 p.m. 60
Afternoon, Drive time 3 p.m.-7 p.m. 83
Evening 7 p.m.-midnight 50 *

* Based on Katz Spot Radio Estimate #14, 1971.

Weekend rates are regarded as a separate time classification.

Stations often refer to the time periods as classes, as Class A, B, C, D;
rates vary accordingly. Each station defines its classes on its rate card.

173
 176 Time is sold in units of 1 minute, 30 seconds, or 10 seconds. The
Media
formerly popular unit of 20 seconds has largely given way to the 30-second
spot.

Rate Classifications

Drive time. This is the most desired and costly time on radio.

Preemptible vs. nonpreemptible time. As in TV, radio time is pre¬

emptible by the station unless it has been ordered nonpreemptible at extra
cost. Of course, the total time of any station is preemptible for any public
announcement of major importance.

Run-of-station (ROS). This means the station has a choice of mov¬

ing the commercial at will, wherever it is most convenient to the station. Pre¬
emptible ROS time is the lowest on the rate card.

Special features. This refers to time adjacent to weather signals,

news reports, time signals, or traffic or stock market reports, for which a
premium is charged.

Participations. Some stations have outstanding-personality shows or

community events in which an advertiser can buy time called participations,
at a special rate.

Weekly Package Plans

Originally, stations offered frequency discounts based on 13-, 26-, 39-, or

32-time usage—a holdover from magazine days. This type of discount has
been replaced by weekly package plans (also called Total Audience Plans),
in which a station offers a number of time slots divided in different propor¬
tions over the broadcast day, at a special flat price. The advertiser must buy the
package to get the special price. As typical examples of such package plans,
we have these actual cases.6

STATION A

Package Plans Per Wk. Ea. : 1 min. 30 sec.

20 ti (8 Drive, 12 all other times) . $55 $44

15 ti (5 Drive, 10 all other times) . 57 46

6 From Spot Radio Service of Standard Rate & Data Service, September 1972.
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Total Audience Plan

PerWk.: 12 ti 18 ti 24 ti 30 ti
(Y 3 Traffic, % Housewife, % Weekend)

1 min.. $26 $24 $22 $20

30 sec.... 21 19 18 16

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30 sec. 13 12 10.40 8

y4 ea. 6-10 a.m., 10 a.m.-3 p.m., 3-7 p.m., 7 p.m-midnight.

177
 WIFE
INDIANA 1941
Extract of a
Indianapolis—Continued A Star Station
page of radio
Wl BC
1938
Independent rates from
Standard Rate
BLAIR
6 RADIO

R A B
& Data Service.
Here all rate
cards are
Subscriber to the NAB Radio Cede published in
Media Code 4 215 4465 1.00
Subscriber to the NAB Radio Code
Fairbanks Broadcasting Co., Inc., 2835 N. Illinois
Media Code 4 215 4560 9.00
full, giving
St., Indianapolis, Ind. 46208. Phone 317-924-2661.
TWX 317-634-3906. Star Stations of Indiana. Inc.. 1440 N. Meridian
St.. Indianapolis. Ind. 46202. Phone 317-637-1375. information in
STATION’S PROGRAMMING DESCRIPTION
WIBC: Programmed for adults and young adulU.
STATION’S PROGRAMMING DESCRIPTION standardized
MUSIC: middle-of-the-road, familiar album product. WIFE: Programmed for young adult*.
Current top selling singles complimentary to format MUSIC: Current hits, album selection and past hits.
Air personalities each segment. NEWS: 24 hours
numerical
are aired, along with gold records from past fifteen
in 5 min segments at :55, headlines at :28, sports
years. Music presented by personalities, who’s com¬
ments are geared to community involvement. FARM: at :20. Local, national & international using 7 man sequence for
farm news, weather and market reports with farm news staff, 2 mobile units. AP, UPI and UPI audio
director 5-6 am & 12:15-1 pm. NEWS: 10 man service. Program features include weather twice per each medium.
staff and mobile units, plus UPI audio. 10 min re¬ hour, high school reports twice nightly. Comedy phone
ports at 7-8 am & 4-5-6 pm. 5 min reports at 6:30- calls done by morning personality. Household hints.
7:30-8:30 am & 4:30-5:30 pm. Balance of day 5 min Frequent contest and station promotions. Contact
reports on hour. Community service: regular schedule Representative for further details. Rec’d 3/29/71.
of public affairs and religious programming. Contact 1. PERSONNEL
Representative for further details. Rec'd 12/23/68. Chairman of the Board—Don W. Burden.
Vice-Pres. & Gen’l Mgr.—Robert D. Kiley.
I. PERSONNEL Chief Engineer—Murray Smith.
President—Richard M. Fairbanks.
Vice-Pres. & Gen’l Mgr.—James Hilliard. 2. REPRESENTATIVES
Vice-Pres. & Gen’l Sales Mgr.—Richard Yancey. HR/Stone Radio Representatives, Inc.
3. FACILITIES
2. REPRESENTATIVES 5.000 w. days. 1,000 w. nights; 1310 kc.
Blair Radio. Directional—night only.
Operating schedule: 24 hours daily. EST. Courtesy SRDS
S. FACILITIES
4. AGENCY COMMISSION
50.000 w. days. 10,000 w. nights; 1070 ke. 15/0 time only: 10th of following month.
Directional—separate patterns day and nlghL
Operating schedule: 24 hours dally. EST. 5. GENERAL ADVERTISING See coded refutations
General: 2a. 3a, 3b. 4a. 4d, 5. 6a, 8.
4. AGENCY COMMISSION Rate Protection: 10b, lib, 12b, 13b, 14b.
15/0 time only. Basic Rates: 20a. 22a. 23a, 28b, 29a.
Contracts: 40a. 45. 46. 47a, 48.
9. GENERAL ADVERTISING See ceded rtfulatloaa Comb.; Cont. Discounts: 60a, 60k, 61a, 61b, 62b.
Cancellation: 70e. 71s., 73a.
General: la, 2a, 3a. 3b. 3c. 3d. 4a, 4d, 5. 6a. 7b. 8. Rotating Plan Packages and programs, in all cate¬
Rate Protection: 10c. 11c. 12c. 13c. 14c. 15a. 16. gories. are combinable: 1-min and 30-sec spots may
Basic Rates: 20b, 21a, 21d. 22a 23b, 24a, 24c, 25a. earn frequency discounts on 10-second spots. Rate
26. 27. 29b, 30. 33a. _ „ holders are not available.
Contracts: 40a, 4l, 42b, 44b, 45, 46. 47a, 51a. Combines with AM to earn higher FM frequency,
Comb.; Cont. Discounts: 60b. 60e. 601. 61a. 61b, 62d. however, FM is not combinable with AM for higher
Cancellation: 70a, 70e, 71a, 72. 73a. 73b. AM frequency.
Prod. Services: 80. 82.
Affiliated with Blair Represented Network. TIME RATES
FM facilities: WNAP (FM).
Sold in combination With WNAP (FM). See that Eff 8/1/70—Rec'd 7/30/70.
listing for rates. AA—Mon thru Sat 5:30-10 am & 3-7 pm.
A—Mon thru Sat 10 am-3 pm & 7-11 pm; Sun 6-10
TIME RATES pm.
No. 11 Eff 2/15/71—Rec’d 2/15/71. B—All other times.
AA—Moo thru Fri 6-10 am, noon-1 pm & 3-7 pm. 7. PACKAGE PLANS
A—Mon thru Sat 5-6 am; Mon thru Fri 10 am-noon 1-MINUTE TOTAL AUDIENCE PLANS
& 1-3 pm; Sat 6 am-7 pm; Sun 5 am-7 pm. PLANS: I II III IV
B—Mon. thru Sun 7 pm-midnight. 5:30-10 am.. 6 4 3 2
10 am-3 pm. 12 8 6 4
C—Mon thru Sun midnight-5 am. 3-7 pm...-. 6 4 3 2
.
6 SPOT ANNOUNCEMENTS
CLASS AA
7 pm-midnight and/or wknd. 12
PER WK. EA:
1 min.. 35.00 37.00 38.50
36 tl 24 ti
8
18 ti
6 4
12 ti
40.00
PER WK: 1 ti 6 ti 12 ti 18 ti 24 ti 30 ti 30 sec or less: 80% of 1-min.
1 min..— ... 60 55 50 48 46 44 10 sec or less: 50% of 1-min.
20/30 sec.. ... 48 44 40 38 36 34 1-MINUTE ROTATING PLAN
ID’s -- ... 36 33 30 29 28 27 PER WK: (*) 12 ti 18 ti 24 tl 36 ti
AA _ 56.00 50.00 49.00 48.00 47.00
CLASS A A . 45.00 44.00 43.00 42.00 41.00
1 min___ ... 50 44 40 38 36 34 B . 25.50 25.00 24.50 24.00 23.50
20/30 sec.. ... 40 35 32 30 28 26 (*) 6 or less ti.
ID’s .-...... 30 26 24 23 22 21 Specified position, extra 10%.
AM/FM COMBINATION
CLASS B (Based on TAP disbusement)
20 PLAN; I II III IV
1 min......... ... 25 23 22 21 19 PER WK: 72 ti 48 ti 36 tl 24 ti
20/30 sec. ... 20 19 18 17 16 15 1 min (1/2 am, 1/2 FM)_ 1620 1152 900 648
ID’s . ... 16 15 14 13 12 11
8. PROGRAM TIME RATES
CLASS C 10 min—200% of 1-mln, 2 min—125% of 1-min.
1 min..-.— ... 16 15 14 13 12 11 5 min—150% of 1-min.
20/30 sec..... 13 12 11 10 9 8
10 9 8 7 6 W1FE/KISN, VANCOUVER, WASH./KOIL,
ID’s . ... 11 OMAHA, NEBR,
Minutes, station breaks and ID’s may be combined
for maximum frequency. 5% for a 3 station buy.
 THE PULSE, INC AVERAGE ’A HOUR AUDIENCE ESTIMATES IN HOME & OUT OF HOME MONOAY-FRI DAY
CHICAGO A COUNTY METROPOLITAN AREAS JAN-F EB.1971
6A . M .-10A.M.
PERSONS REACHED ESTIMATES PERSONS REACHED ESTIMATES OV AGE
W( N * OM( N tccnj TOTAL ME N MF N MEN ME N • OMt N WOMEN W OMEN WOMEN
STATIONS 16-2 4 2 b- 34 35-41 30-64 16-24 23-14 13-49 30-94
• TO »oc T C. ■oo «TG ■00 *TG <00 1001 (00 ’ '00' (OO 1 (OO) lOOl (OOl (OO)
WAIT ♦ I .2 278 1.4 376 .2 21 1 . 0 675 4 94 36 1 28 46 152 1 19
WB8M 1 . 7 399 2.0 531 l . 5 997 12 34 1 03 1 44 33 1 26 1 92
WRBM-FM ,.2 57 .2 40 . 3 25 .2 122 24 33 29 1 1
WBFE ♦ . 1 15 1 5 15
• CFL I . 2 290 .9 229 3.8 340 1 .4 977 1 98 68 i a 2 83 28 82 36

W 0 A I-FM .3 66 . 2 52 . 1 7 .2 1 25 53 1 3 52
WDHF-FM .2 4 1 . 1 4 1 4 37
WFMF-FM ♦7 1 57 .3 87 . 1 5 .4 261 30 9 31 27 12
WFMT-FM . 3 67 .4 1 03 .2 1 70 58 8 6 25 42 30
15N 5.4 1277 6. I 1580 .9 82 4. 3 2949 1 39 1 76 468 339 74 296 467 495

WGRT .5 1 20 . 8 208 . 7 64 .6 392 91 5 24 4 1 49 64 54

WIND I .7 407 1.8 463 . 5 41 1.4 944 44 1 37 53 8l 1 6 145 1 04 1 14
W JJD ♦ .8 197 1.3 340 537 1 0 6 104 34 62 76 1 83
•0
WJJD-FM a . 1 19 . 1 ' 33 . 1 52 3 *16 9 1 4 10
W JOB . 1 30 . 5 1 22 .2 l 52 7 3 1 1 90 32

WKFM-FM .2 55 . 2 45 . 1 1 00 46 3 ie 1 1 22
WLS 2.2 528 2.6 688 5.6 508 2.8 1906 30 1 121 52 30 21 1 1 41 1 72 1 64
KM AQ . 7 162 1.6 420 . 9 607 a 9 65 33 25 56 l 72 1 18
WNUS t . I 268 .5 1 22 .6 423 29 1 2 1 4 79 1 1 72 1 8 21
WNUS-FM X

WSDM-FM .4 1 05 . 1 1 4 . 2 1 19 37 66 2 9 5
W VON 1 .8 4 15 2.0 524 1.4 127 1.6 1 093 1 04 1 30 T) 3 54 213 159 1 1 3 39
WWC A .4 89 1 1 . 1 100 89 1 1
WWEL-FM .2 49 . 2 50 . 1 99 32 1 1 4 1 3 33
TOTAL 2 1.9 5151 24. 1 6282 14.3 1 292 l 9.5 l 3271 1019 973 1 425 973 80 1 1 199 1881 16 56

THE PULSE. NC. CUMULATIVE AUDIENCE ESTIMATES IN-HOME & OUT-OF-HOME

PERSONS REACHED ESTIMATES PERSONS REACHED ESTIMATES BY AGE
MEN W OMEN TEE NS TOTAL MEN MEN MEN MEN W OMEN WOMEN WOMEN WOMEN
STATIONS 1 8- 24 25- 34 35-49 50 -64 18-24 28-34 35-49 50-64
RTG (00) RTG (OO) RTG (00) RTG (OO) (OO) (OO) (OOl (00) (00) (00) (OO) 100)
WAIT 6.8 1588 8.0 2097 i . l 1 00 5.7 3852 34 3 62 437 570 72 30 4 782 5 78
WRBM 12.1 2852 9.5 2488 1.6 l 48 8.5 5790 58 258 61 2 1 326 59 230 742 877
WBBM-FM 3.0 70 1 1 . 7 4 46 3.3 299 2. 1 1 446 1 57 275 133 1 36 231 1 73 42
WDEE .3 73 .6 1 45 1.0 89 .5 30 7 73 59 51 35
WCFL 11.7 2760 8.0 2090 34.5 3118 1 4.3 9 72 1 1 84 1 598 244 31 955 41 2 49 1 232

WDAI-FM 1 .6 365 1 . 1 288 1.5 1 36 1.2 789 272 93 21 l 63 I 4

WOHF-FM . 1 34 . 3 72 . 2 1 06 34 16 56
WF MF —FM 2.7 624 2.2 567 . 5 41 2.0 1 332 *22 55 197 125 163 103 66
WFMT-FM 1 . 1 267 1.7 433 1.0 700 37 176 31 100 63 96 ,1 74
WGN 23.6 5539 17.5 4573 6.0 543 16.3 1 1 093 368 1 1 36 1733 1 692 325 73 1 1 120 1 365

WGRT 6.2 1 451 6.3 1 658 5.5 494 5.5 3748 531 220 530 1 70 7 l 2 430 336 1 80
W I ND 13.8 3242 9.4 2443 5. 0 448 9.6 6533 470 967 652 900 32 1 497 51 5 682
W JJD 3.9 923 6.2 1620 .2 18 3. 8 2561 40 264 34 1 198 1 7 1 425 45 1 372
WJ JD-FM .6 1 46 1.7 4 34 .9 580 23 123 18 123 1 40 1 53
W JOB l .2 284 2.6 689 1.4 973 28 1 1 9 68 1 1 8 71 280 220

WKFM-FM 1 . 1 250 1.2 323 . 8 573 1 47 38 42 72 47 84 86

WLS 17.3 4064 14.8 3861 39. 7 3586 2 1.5 14604 1851 1 1 86 420 50 4 1507 927 865 528
WMAO 4.9 1144 6. 1 1595 1.0 94 4.5 3033 78 1 25 39 2 343 54 166 537 52*
WNUS 6.8 1 594 3.6 947 3.9 2674 1 86 646 538 1 48 342 208 1 82
WNUS-FM

WSDM-FM l .8 433 .6 1 60 .9 593 73 206 154 18 4 1

W VO N 1 1 .6 2734 12.2 31 89 9. 3 8*3 10.2 691 1 512 765 98 3 328 1 064 834 922 36*>
WWC A 1 .9 456 1.0 254 1.0 710 293 94 45 39 1 20 50
WWEL-FM 1.6 368 1.6 420 l .2 788 37 l 3 1 1 77 70 92 1 2*
TOTAL 84.9 19936 8 1.3 2 1240 66. 4 6001 75.3 51201 3242 *063 5746 4567 3524 4 109 574 7 *9*8

TOTAL INCLUDES MEN,WOMEN,TEENS ♦ CHILDREN

Courtesy, The Pulse, Inc.
A page from an audience radio report, which estimates how many
people were reached during the week by the different stations.
It divides men and women by age groups, and lists teens separately.

179
 180 In the purchase of spot time, there is often much negotiation of rates
Media between stations and time buyers. We discuss this later in the book.7
The Standard Billing Week is Monday through Sunday. The Standard
Billing Month ends on the last Sunday.

Types of Station Programming

Most radio stations select a particular demographic group or groups

and plan their programming to reach these groups. Most provide a consistent
recognizable sound throughout the broadcast week. Station formats in general
use are:

Format A—Contemporary "Top 40"

Record-sales charts provide the basis for the music selection. Geared
to a younger target audience.
Format B—Middle of the Road
Popular music, bright, bouncy, but not as briskly paced as Format A.
Limited playing of contemporary music, except for major hits.
Format C—Standard
A wider selection of music than Format B. Tends to be the stan¬
dards” of this and other years.
Format D—Good Music
A lush, largely instrumental sound, with vocal selections mainly
ballads.
Format E—Classical / Semiclassical
Ranges from light classical to complete opera. Quartettes, sympho¬
nies, concertos, etc.
Format F—Modern Country Music: "The Nashville Sound
Ballads and American folk music, performed in basic rhythms with
a wide range of orchestrations.
Format G—Talk
Both "two-way” and personality talk programming. Adult oriented.
Format H—News
All or virtually all news programming. This does not refer to cap¬
sule newscasts as found on almost any station.
Format I—Black
Programming directed primarily to a black audience in terms of
both music selection and talk.

(There is no need to memorize these classifications; just be aware they exist.)

Some stations utilize a mixture of formats, playing one kind of music
in one part of the day, and featuring entirely different programming in other
parts. Each portion of the programming is planned to reach a specific target
audience, as revealed in these excerpts of rate cards:

^ p. 588.
WDYH, Gainesville, Fla. WXYZ, Detroit 181
Using Radio
Programmed with emphasis on 25-55 Programmed for adults and young
age group. Music: country and west¬ adults. 6 air personalities introduce
ern, primarily Nashville-produced popular music comprised of middle-
modern country hits and polished ver¬ of-the-road and current hit selections.
sions of all-time familiar favorites.

WPAT, Paterson, N.J. KXA, Seattle

Programmed for young adults and Music: show tunes, popular concert,
adults. Music: 85% popular stan¬ film tunes, and light concert. Sym¬
dards to jazz, show tunes to light clas¬ phonic treatment of standard melo¬
sics, film music to folk, vocals and dies, and familiar tunes. Large popu¬
instrumentals mixed, edited and lar choral groups and concert orches¬
blended on tape to achieve a distinc¬ tras with instrumental soloists.8
tive sound.

FM Appears

Up to now we have been speaking chiefly of AM radio, which has been on

the scene for over 50 years. FM arrived on the scene around 1940. It was
just beginning to become known to music lovers, because of its fine tonal
qualities, when World War II came along and stopped production. In the late
1940’s, FM resumed its growth, retarded, however, by the fact that it needed
a separate, costly FM set. But it grew.
The secret of the fine tonal reception of FM lies chiefly in the fact
that the FM wave is twenty times as wide as the AM wave; that fact alone
makes for better reception. To accommodate a wave of that width, however, a
wide band on the spectrum was needed, and FM was assigned one so high
that its frequency is measured in megacycles (mgs.), rather than kilocycles
(kcs.) as in the case of AM. At that height, the FM wave is above the static,
fading, and background noises that prevail at the lower levels. The result
of all this is sound pure enough for stereophonic reception of music.

The range of FM. However, FM has its limitations. Unlike AM

waves, FM waves travel in straight lines only. They cannot go around ob¬
stacles, or follow the curvature of the earth over the horizon. Their trans¬
mission has been likened to a "line-of-sight” path.
Furthermore, FM waves are not reflected back to earth at night, as
are the AM waves; they continue to go right through the ionosphere. That is
why you never get FM stations at night from as far away as some AM stations.
FM antennas are erected at the highest terrain in the area, so that they can
have their signal reach as far as possible within the limits set by the FCC.

8 Standard Rate & Data Service, January 1972.

 182 FM-AM Unhooked
Media
At first, AM programs were often duplicated by FM "sister” sta¬
tions: these duplicated programs were called simulcasts. But in the I960 s, the
FCC required that no more than half of the broadcast day could be simulcast
on FM. FM stations had to originate programming of their own, and now
offer as much variety as is found on AM stations. Independent FM stations,
with no AM affiliation, have of course always originated all their own pro¬
gramming. Originally largely programmed with fine music, classical and
semiclassical, FM today runs the entire gamut from "underground rock” to
classical. A survey in 1970 showed that most of the programming (24 per¬
cent) was "Middle of the Road.” Then came Beautiful Music (14 percent),
Modified Contemporary (9 percent), and Modified Middle of the Road/Beau¬
tiful Music (9 percent). Only 3 percent of the programming was for classical
music.9

The Recent Growth of FM

The growth of FM since 1965, when it was unhooked from its little
sister” role, has been spectacular.

—In 1965, 6.5 million FM sets were sold; in 1970, 93 million.

—In 1965, 8 percent of portable radio sets sold were AM-FM sets; in
1970, 59 percent.
—In 1965, 630,000 FM car-radio sets were sold; in 1970, 1,430,000
sets were sold.10 Legislation is afoot to require all new radio re¬
ceivers to be able to receive FM as well as AM.

Planning the Reach and Frequency Schedules

When we plan to go into a market, the question arises in radio, as in tele¬

vision: Shall we try to reach as many people as possible a few times with a
given message, or shall we try to reach fewer people more often? What is
our message, what is our target, and what is the optimum balance? (As a
matter of unifying comparisons, frequency is measured in terms of a four-
week period, although a schedule can be much longer or shorter.)
A great step toward getting a mathematical base for making a de¬
cision was made under the auspices of the Radio Advertising Bureau, where
10,000 different radio schedules were fed into a computer, and the range of

9 Report, National Association of FM Broadcasters, 1970.

10 RAB Instant Background FM Radio, published by the Radio Advertising Bureau,
1971.
reach and frequency of exposure was determined at different levels of ex¬ 183
Using Radio
posure. Reach and frequency curves were then developed and have been pub¬
lished in book form by the Bureau.11
The Westinghouse Broadcasting Company also developed a com¬
puterized program with its Numath System (since improved by its Numa
System), as per the following example published through their courtesy:

11Radio’s Fourth Dimension: 4-Week Reach & Frequency (New York: Radio Ad¬
vertising Bureau, 1970).
 184
Media

Numa Programming
Radio planning by computer

An advertiser has a budget of $500,000 for advertising. He is interested in

reaching women in the 25- to 49-year-old age group. He has determined that
his copy is most adaptable and effective in a one-minute form. He also wants
to confine his advertising to weekdays and Saturday before 7:00 P.M. to coin¬
cide with shopping hours; therefore he will spread his advertising over the
period of 6:00 a.m. to 7:00 P.M., Monday through Saturday. What is the
best pattern of reach and frequency?
These are oversimplified decisions for the sake of illustration, but
they do reflect the kinds of choices that are made.
Four factors have to be established . . . namely, reach, frequency,
number of markets, and number of weeks of advertising. Each of these is
directly related to the others; and the choice of one will greatly affect the
other. Using a computer program, it is possible to establish a variety of cri¬
teria and then make a selection from the alternatives, depending upon which
element is most important.

Choke 1. The advertiser wants to reach at least 15 percent of the

target group in any market over the course of four weeks. He then has a
choice of these alternatives:

Number of Number of
Reach Frequency Markets Weeks

75 6.8 Top 10 13
75 4.2 Top 20 13
75 Cannot be Top 50 13
achieved
75 11.2 Top 10 8
75 7.6 Top 20 8
75 4.2 Top 50 8

Choke 2. The advertiser wants an average frequency of 8.0 over a

four-week period. In this case the alternatives would be as follows:
 Number of Number of 185
Using Radio
Frequency Reach Markets Weeks

8.0 68.8 Top 10 13

8.0 51.5 Top 20 13
8.0 33.2 Top 50 13
8.0 89.9 Top 10 8
8.0 71.4 Top 20 8
8.0 51.5 Top 50 8

Choice 3. The campaign must cover the top 20 markets for a period
of 13 weeks. The advertiser then can select from the four-week reach and
frequency alternatives available.

Number of Number of
Markets Weeks Reach Frequency

Top 20 13 17.5 31.7

Top 20 13 42.9 10.4
Top 20 13 65.8 5.6
Top 20 13 78.2 3.9

To demonstrate how any of the alternatives in Choice 3 can be imple¬

mented, the summary table below shows the average number of stations per
market to be used and the average number of announcements to be used on
each over a period of time, depending on the degree of importance of reach,
frequency, number of stations, and frequency in each situation.

Average
Average Number of
Number of Announcements
Reach Frequency Stations per Station

17.5 31.7 1 or 2 100

42.9 10.4 3 or 4 27
65.8 5.6 7 or 8 11
78.2 3.9 12 to 15 5

This system does not tell you which plan to use. That depends on your
own judgment of what is most important to you—reach, frequency, number
of markets. But under this system, rather than buying an arbitrary number
of stations and number of announcements in each market, the program pro-
 186 vides a far more precise figure, which indicates the number of stations to be
Media used in each specific market, and the number of announcements to be made
per station, once the buying policy has been established.

The Radio Market Area (RMA)

A local advertiser has little problem in selecting the best stations to use; he
lives right in the territory; he knows through which station or stations he can
best reach his prospects. But a national or regional advertiser planning to
use radio in a wide geographical spread has a more complex problem, par¬
ticularly when stations from neighboring larger cities overlap the local sta¬
tions of the adjacent territories, which often represent important markets. In
1972, the first Radio Market Area report was published, permitting an ad¬
vertiser to determine which stations to use to get the optimum spread per
dollar in all the markets in a territory.
As a typical example, we have the case of an advertiser who is using
radio in two metropolitan markets 100 miles apart. Between them lie three
smaller cities, A, B, and C; each, however, represents an important market.
Question: To cover those markets, should he also use the local stations in
each? That is an obvious way. The RMA report showed, however, that he
should use the local stations in cities A and B, but he did not have to do so to
get good coverage in city C. To a national advertiser planning a widespread
radio schedule, such information can make a big dollar difference.
The Radio Market Area concept, by Vitt Media International, is
parallel in radio to Nielsen’s Designated Market Area (DMA) and the Area
of Dominant Influence (ADI) of the American Research Bureau, used for
television planning.

Gross Rating Points for Radio

A rating point is an estimate of the size of a radio or television audience, ex¬

pressed as a percentage of a total audience. The system used in television is
also used in radio, applied to its special needs. The difference between a radio
rating point and a television rating point relates to the group being measured.
In television, we measure homes and people, while in radio we measure only
people 12 years old and over. Therefore we can equate radio and television
only against people 12+ years old who use either medium.
One GRP (Gross Rating Point) is 1 percent of the total population
group under evaluation, whether it is homes or people.
A national advertiser planning to enter metro markets across the
country can determine how many GRP’s he plans to buy in each market, and
use that as a yardstick in actually scheduling stations and programs in a city.
 FOR AGENCY USE

BLAIR TELEVISION AAAA-SRA

RECOMMENDED FORM
A DIVISION OF JOHN BLAIR A COMPANY

AGENCY Vitt Media STATION/MARKET WTSN-TV, MTT.WATIKEE

BUYER Anna Zgorska CHANNEL/NETWORK Channel 12/CBS
ADVERTISER Monsanto RATE CARD #20
Flat Rates SALESMAN Mulholland/b
PRODUCT rextiles (Fabrics) CONTRACT INFO
TEL NO. PL 2-U400
SCHEDULE DATES 3/21—2 Weeks
20 spots RATING SERVICE Nov. NSI DATE February 22
MARKET BUDGET

Courtesy, John Blair & Company, and Vitt International Media, Inc.

How Recommended Availabilities are Presented

Planning and Buying Radio Time

We begin with a budget for a given time, a list of markets, a reach-frequency

pattern, and a decision as to length of commercial.
In buying spots, we ask:

1. What is the station’s rating?

2. Does the programming attract our target audience?
3. What is the station’s share of the total audience we seek?
4. What is the power of the station? If we are out for reach, that
might be important.
5. What is its reptuation on preemptions and make-goods?
6. What is the best deal that can be negotiated?

In the case of a radio network, we ask about:

187
 188 1. Physical facilities. How many stations comprise the network? How
Media strong are the network affiliates in the markets most important
to us?
2. Special-event availability. What programs are available? Ratings?
What kind of demographic audience do they attract, and how large
is it?
3. Cost. What are the comparative rate advantages and disadvantages
of the networks being considered, in reaching the best potential
customers? The goal is to reach the greatest number of the people
you want to reach at the lowest cost per message. What is the best
price that can be negotiated?
4. Programming environment. Does the audience attracted by the
programs mesh with the demography of the product profile? Is it
compatible with the message to be delivered?
5. Other considerations. Is it desirable to have the same advertising
pressure in all markets, or does the product sell better in large
cities, in rural areas, etc.? If so, it may be desirable to consider
using spots to supplement a network schedule.

Trends in Radio

Between I960 and 1970, radio network increased 35 percent; spot, 60 per¬
cent; local, 102 percent.13 Local radio will continue to zoom ahead, be¬
cause it is so readily available to local merchants, there is no (or little) pro¬
duction cost, an advertiser can go on with short notice, it reaches out to spe¬
cific audiences in the advertiser’s market, and it has proved highly effective.
The pricing of spots has become more realistic for the national advertiser,
and the ability to reach specific audiences will increase their usage. Networks
are being largely reduced to five-minute newscasts on the hour, and most of
their other programs are by transcription.
FM radio, which shot up so fast since AM and FM stations were un¬
hooked in broadcasting, promises to be one of the great growth sectors in
radio.
W Tv* W

We will discuss the creation and production of radio commercials in

the next section of the book. Meanwhile, we continue the discussion of media.

13See pp. 136-137.

 189
Using Radio

Travelodge
A case report on the use of radio

by Carl J. Short

The appropriateness of any medium for any client involves one basic task.
That is matching the characteristics of a given medium with the communica¬
tion objectives of a given client. In this particular instance, the client was
Travelodge International, one of the largest motel/motor-hotel chains in the
world.
Travelodge’s objectives were:

1. To communicate the availability and convenience of Travelodge’s

one-number reservation system.
2. To communicate the availability of Travelodge’s directories (rate,
facility, and location guides which had proved to be effective in
increasing business once in the hands of a traveler).
3. To communicate to the traveler the convenience of availability
offered by a nationwide network of over 450 properties and 27,000
rooms.
4. To communicate the dual personality of Travelodge, for there no
longer existed a typical Travelodge product (in addition to their
traditional two-story motels, Travelodge has added in recent years
a number of high-rise motor hotels).

To meet these objectives, we needed a medium which could offer:

1. National coverage of Travelodge’s target audience at a low cost-

per-thousand.
2. High frequency of exposure to this target audience because of the
number of subjects we had to communicate.
3. Great flexibility—the flexibility of inserting copy changes on rates
or special events at a moment’s notice, tagging a corporate an¬
nouncement with reference to an individual property, or placing
the greatest advertising support in areas particularly important as
origination or destination centers or cities where Travelodge motor
hotels are located.

We conducted a review of media possibilities, beginning with a

study of Brand Rating Index data as it applies to the print and broadcast

Excerpted from Matchmaking the Message with the Medium by Carl J. Short, Vice-
President, Dailey & Associates. Broadcasting, August 9, 1971. Reprinted with permission,
Broadcasting Publications, Inc.
 190 media. Magazines were the first to be eliminated, because we felt they
Media
couldn’t deliver sufficient frequency. Television was eliminated because of its
cost. Newspapers went because we felt that on a national basis they were an
inefficient buy.
That left radio, which could fulfill all of the needs outlined above.
It could also provide us with flexibility (Travelodge could "move around —
change messages on short notice to suit seasonal or special situations). It
would provide a personal contact with the prime target audience—the male
adult with a college education and better-than-average income, and the
businessman who would make Travelodge his business address, would in¬
fluence a decision for using Travelodge motor hotels for sales meetings, and
would think of Travelodge when planning personal or family vacations.
Next came the decision of which type of radio to buy. First we re¬
viewed the availabilities on all networks and then the facilities of all networks
—particularly in major markets and markets of special interest to Travelodge.
We also looked at the possibilities of using spot radio only. This drew
a negative response, because it was felt that it would not offer enough co¬
hesiveness through the peak travel season—markets would vary so much with
format and personality that there would be no Travelodge "feel.”
Standing there at attention was network radio. But which network?
The stature of CBS Radio, its strength in the major markets, as well
as its nationwide coverage with over 240 stations (reaches over 21,000,000
different adults in a given week), made it the most desirable. This, plus the
availability of 'Walter Cronkite Reporting,” a five-a-week news analysis
series produced by CBS News, and the willingness of CBS to work with us
in building a 26-week program—13 weeks of Cronkite in peak summer
travel time (July-August) and a scatter plan of 60-second announcements
preceding and following the Cronkite schedule.
Also affecting the decision were the efficiency of CBS Radio (our
buy delivers in excess of 1,300 adult listeners per dollar) and the merchandis-
ability of Walter Cronkite and CBS to the Travelodge owners and operators
—i.e., the immediate rapport established through such a spokesman.
To increase our frequency and flexibility, we added spot-radio flights
in 17 major markets. There we could supplement our corporate spots with
"live” tags for individual Travelodge properties; we could concentrate our
efforts in those metropolitan markets important as origination and destination
centers (generally paralleling population rankings); and those areas where
Travelodge had motor hotels or large clusters of motel properties (not always
paralleling population rankings); and we could greatly expand our frequency
of exposure, thus increasing our chances that a large segment of Travelodge’s
target audience would hear each of Travelodge’s communication messages.
The final problem faced—capturing the rural/city dual personality
of the client’s product—demonstrates the close relationship between the
medium and the message. In this case the use of sound permitted an effective
translation of this duality. Voice casting and music selection were chosen on
the basis of combining just the right balance of "down-home” and "down- 191
° Using Radio
town” sounds.
. . . After three months, this program has aided Travelodge in in¬
creasing the participation and enthusiasm of individual co-owners and
managers, in placing a larger percentage of their business through the one-
number reservation system, and in increasing the overall occupancy rate of
the chain.

Review Questions

1. What are the major advantages of 7. Define or describe the following:

radio for the national advertiser? Its a. weekly plan
limitations ? b. preemptible time
c. radio participations
2. Why is radio called the "ubiquitous"
medium? 8. Explain why radio stations have dif¬
ferent program formats. Can you
3. About how many radio stations can name five formats in general use?
you get on your set? How does the How would you characterize the
number of radio stations in a mar¬ formats of major stations in your
ket affect the use of radio as a area?
medium?
9. What are the four factors that were
4. Why are radio stations assigned to considered in Westinghouse’s Numa
different classes? What are they? analysis, presented in this chapter,
5. Why is FM reception better than and what value does this analysis
AM reception? You can hear AM have for the advertiser?
stations from far distances at night. 10. Discuss the major considerations in¬
Why not FM stations? volved in buying radio network time
6. Into what time periods is the broad¬ and radio spot time.
cast day usually divided ? Rank them 11. In the case of Travelodge, what
as to size of audience. were the major reasons the com¬
pany chose radio? What were their
reasons for choosing it the way
they did?

Reading Suggestions

Advertising Age, "Broadcast Advertis¬ 3rd edition. New York: Appleton-

ing: 1970,” a special section, Novem¬ Century-Crofts, 1963.
ber 2, 1970, p. 19ff. Coddington, Robert H., Modern Radio
Barton, Roger, The Handbook of Ad¬ Broadcasting. Blue Ridge Summit,
vertising Management. New York: Pa.: Tab Books, 1969-
McGraw-Hill Book Company, 1970.
Media Decisions,"Radio Turns the
Broadcasting Yearbook, published an¬
Tables,” March 1971, p. 44ff.
nually by Broadcasting (magazine),
Washington, D.C. Radio Corporation of America, The
Chester, Giraud, Garnett Garrison, and First 25 Years of RCA. New York:
Edgar Willis, Television and Radio, Radio Corp. of America, 1944.
Using Newspapers

Think of the United States not as one big market, but as 1,503 individual
markets. The focal point of each market is a city or town where one or more
newspapers are being published. At the editorial desk of each paper sits a
man who has lived in that community for many years; he was probably born
in that region. He knows its people, their ethnic background, where they
live, how they make a living, how they live, and what kind of news interests
them most. No wonder 78 percent of the population over the age of 18 read
a daily newspaper.
More money is invested in newspaper advertising than in any other
medium. Of that advertising, 80 percent is local; 20 percent national.*

Background

In the United States there are about 1750 newspapers. Of these, about 80
percent are evening papers; 20 percent morning papers. This number includes
about 200 newspapers that are both morning and evening papers. There are
also 600 Sunday newspapers. These are aside from the weekly papers, which
we consider separately.
The number of daily papers has been shrinking over the years, as has
the number of cities with two or more papers, but the total newspaper circu¬
lation has been rising, as follows:

No. OF
Year Papers Circulation

1920 2,042 27,790,656

1940 1,878 41,131,611
1960 1,763 58,881,746
1970 1,748 62,107,527

There has also been a change in the geographical sites where the
newspapers are being published, reflecting the population shift. While a

* See pp. 121.

192
number of metropolitan papers have closed shop or merged with others, many 193
Using
"outside,” or suburban, papers have sprung up. Within twenty years, the total Newspapers
circulation of the central-city papers went up by 1 percent; that of the suburbs
increased by 150 percent.

Newspaper Reading

The average newspaper is read by more than two people per issue (it
makes the author unhappy to use the statistician’s figure of 2Vs readers per
paper). Of the readers, 42 percent spend over 40 minutes with their paper;
23 percent spend 30 to 39 minutes; and 30 percent spend up to 30 minutes.
Newspaper readership goes up with education, from 75 percent of
those who attended high school to 87 percent among college graduates.
Readership also goes up with household income, from 75 percent of those
with income of $5,000 to $8,000, to 86 percent of those with income of
$15,000 to $25,000.
However, the reading of newspapers is not uniform throughout the
country, as revealed by these figures showing the ratio of circulation to the
number of households in different markets:

Kansas City, Mo. 1.32 San Francisco, Calif. .90

Richmond, Va. 1.26 Salt Lake City, Utah .82
Springfield, Mass. 1.25 El Paso, Tex. .80
Wichita, Kans. 1.17 Los Angeles, Calif. .73 1

This means that if you wanted to cover a market, you would do better with
newspapers in Kansas City than in Los Angeles. In the latter case you would
have to supplement newspaper advertising with other local media.

Features and Advantages

To the national advertiser, the newspaper offers great geographic

flexibility in selecting definable local markets in which to advertise. He can
concentrate his advertising in territories in which his type of product is being
sold, as in the case of hard-water soap, or confine it to those territories in
which his product is well distributed. He may concentrate in those markets
enjoying good economic conditions, avoiding those that are going through a
bad time. He may wish to test different advertising programs in various cities,
to see which program works best before embarking on a more extensive cam¬
paign. He can adapt the copy to the market. If he has a seasonal product, he

1 Source of foregoing statistical data: Bureau of Advertising, 1971.

may readily plan his advertising by weather; the advertising of an antifreeze
was scheduled to appear first in the North, then move with the cool weather
toward the South.
Because they are printed, newspapers can picture styles of products.
The fact that newspapers are issued daily permits the advertiser to move fast
in meeting a sudden marketing opportunity; they are a timely medium. The
papers are also full of advertisements featuring the latest daily offerings on
sale. Hence advertisers meet an audience receptive to learning "What’s new?”
Newspapers are the preferred medium for cooperative advertising placed by
national advertisers through the local stores.

Limitations and Challenges

Every medium has certain limitations that may prove to be disadvan¬

tageous for a given program. Some limitations are beyond the control of the
advertiser. There may be some limitations, however, which the advertiser
can offset, and even turn into advantages. For example:

—The life of a newspaper is very short; it is read hurriedly. This is a

challenge to prepare ads that will compete with news headlines,
as well as with other ads.
—The local advertisers get all the front pages; national advertisers are
pushed to the back. This is a challenge to make your ad so strik¬
ing that it will stand out anywhere. (Even an ad on page 3 will
be skipped if it’s dull.)
—Newspapers are printed on high-speed presses on rough, porous
wood pulp paper, resulting in comparatively poor reproduction,
especially of photographs. But you can design black-and-white
art work that will reproduce well on newsprint, with deep-etched
plates, and end with the best-looking ad in the paper.
—Newspapers are overcrowded on Wednesdays, Thursdays and Tri-
days with supermarket ads. But people read the papers earlier in
the week too, and are always interested in learning about products
that can be helpful to them.
—Newspapers reach everybody, but we are interested only in a certain
limited demographic group. This calls for a review of other
media.

At all times, a newspaper is in competition with other local media,

especially television and radio, on a cost-per-thousand basis of delivering an
effective message.
 Two new studies show
Newspaper-TV mix produces
twice the increase in market
share compared toTValone.
And at no extra advertising cost. In one test the newspaper combination produced a larger number
Two of America's largest food advertisers recently completed tests
that prove that newspapers—in combination with television—pro¬ of new customers.
duced share of market increases that were twice as large as those In both tests, brand loyalty increased most in the newspaper
generated by TV alone. market.
And with no increase in advertising costs.. What do these tests mean to you?
There were two separate tests. One for a canned and frozen food There is dramatic new evidence that newspapers can play a major
advertiser. The other for a dog food advertiser. Each test was con¬ role in your marketing strategy by increasing both market share
ducted by the advertiser, not by us. We simply paid for the meas¬ and total sales at no extra advertising cost.
urement of sales.
Certainly, a similar test for your own product would be well worth
In both cases, the test markets were carefully matched. Each the effort.
advertiser used network TV as a base in both markets. Spot TV
was added to one market. An equal dollars' worth of newspaper The research procedure is simple, inexpensive, accurate, yet it is
advertising was added to the other market. proven and highly regarded. The method used actually washes out
unwanted market variables which plague many tests.
■ In both tests the newspaper and television mix delivered twice
the increase in market share as the "TV only” schedule—and for If you would like more details, contact any of our office managers
the same advertising cost. or Joe Chamberlin, President.

MAJOR DOG FOOD ADVERTISER SHARE OF MARKET MAJOR FOOD ADVERTISER SHARE OF MARKET

PRE-TEST PERIOD (7 MONTHS) TEST PERIOD <6 MONTHS) PRE TEST PERIOD (2 Vi MONTHS) TEST PERIOD (2% MONTHS)

•■B" "A" “B” “A" “B” "A” •B"

"A" MARKET
MARKET MARKET MARKET MARKETI MARKET
MARKET MARKET

JBSmnfe, JMEmk MMSS/suk Jmywlflk

$$

Million Market Newspapers

SIX EAST FORTY-THIRD STREET, NEW YORK, N.Y. 10017 212-986-3434
BOSTON GLOBE • MILWAUKEE JOURNAL AND SENTINEL • PHILADELPHIA BULLETIN • ST LOUIS POST-DISPATCH • SAN JOSE MERCURY & NEWS • WASHINGTON STAR

Encouraging Inter-media Use

This advertisement, addressed to advertisers and their agencies,

goes after some of the money being spent in television by showing
the advantages of using newspapers along with television.
 196 Forms of Newspaper Advertising
Media

Display advertising covers all advertising in the newspaper other than classi¬
fied. Display advertising is divided into local (or retail) advertising, and na¬
tional (or general) advertising. Some newspapers have a division, Classified
Display, for advertising which falls between local and national, as Real Estate,
Amusements, Hotels, Restaurants.

Local (or retail) advertising. This refers to the advertising of local

business establishments. Largest of these are the department stores and the
supermarkets. Included also are the local banks, furniture stores, service sta¬
tions, and all other merchants and institutions of the community. About 83
percent of newspaper advertising is local. This includes classified advertising.

National (or general) advertising. This represents chiefly the world

of nationally advertised trademarked goods sold through many outlets; also
services, such as the airlines and other non-locally oriented advertisers. (The
term "general” is a vestigial term, seen chiefly on rate cards.) About 17 per¬
cent of newspaper advertising is national.

Local rates vs. national rates. Different sets of rates prevail for local
advertising and for national advertising; each has its own rate card. National
rates are higher than local rates by as much as 60 percent in the largest cities.
The difference is rationalized by the fact that retail advertisers have tradi¬
tionally been the steadiest and largest newspaper advertisers, and that their
advertising is placed directly, without agency commission and the need for
special representatives in the major advertising centers. But the difference in
rates exceeds these costs, and there has been great pressure by national ad¬
vertisers to get their rates reduced. Some newspapers have uniform rates for
national and local advertising.2

How Newspaper Space Is Bought

Measuring space. The width of newspaper space is measured in

terms of columns. The depth from top to bottom is measured in terms of
agate lines per column, referred to just as lines, of which there are 14 to the
inch. The size of an ad is specified in terms of lines X columns. An advertise¬
ment five inches deep by two columns wide is written as 70 X 2, spoken of as
"70 on 2,” and is a 140-line ad. The width of the column varies from paper
to paper, but has no bearing on the line rate. And the number of lines of type
set up in a display ad likewise has nothing to do with the measurement of

2 Bureau of Advertising, 1970.

space in terms of lines. Rates are quoted just by the line. (In small-town papers 197
Using
of low circulation, space may be sold by the inch.) Just remember: 14 lines to Newspapers
the column inch.

The rate structure. Each publisher sets his own rates. About 75 per¬
cent of the papers offer a uniform flat rate to all national advertisers. Other
newspapers offer a quantity discount or an alternative time or frequency dis¬
count. The advertiser elects whichever discount structure is best for him.
The highest rate, against which all discounts are figured, is called
the open rate, or basic rate, or one-time rate, as illustrated in the following rates
from a newspaper rate card:

Quantity Discounts Time Discounts

Open rate ... .... 39d Open rate . 390

2,500 lines within one year.. 37 13 times within one year . . 37
44 44 44 a 44 a
5,000 “ . 34 26 44 . 34
44 44 44 44 44 44
10,000 44 . 31 52 44 . 29
44 u a a 44 it
20,000 44 . 28 156 44 . 28

ROP and preferred-position rates. The basic rates quoted by a news¬

paper entitle the advertisement to a run-of-paper (abbreviated ROP) position
—anywhere in the paper that the publisher places it, although he will be
mindful of the advertiser’s request and interest in getting a good position.
An advertiser may buy a choice position by paying a higher, preferred-position
rate—similar to paying for a box seat in the stadium instead of general ad¬
mission. A cigar advertiser, for example, may elect to pay preferred-position
rate to be sure that he gets on the sports page; a cosmetic advertiser may buy
preferred position on the society page. There are preferred positions on the
page itself. An advertiser may pay to have his advertisement appear at the top
of a column, or else top of column next to news reading matter (called full
position). Each paper specifies its preferred-position rates; there is no great
consistency in this practice. (A familiar position request for which you do
not have to pay extra is "Above fold urgently requested.”)

Combination rates. In a number of cities, the same publisher issues

a morning paper and a separate evening paper, in which you can buy space
individually or at a better combination price for both. In some instances, the
advertiser has no choice—the papers are sold on a forced combination basis.
The same space and copy must be used in both papers. Such publishers require
the ads be run the same day, but you may be able to get them to run the ads a
few days apart, to get the advantage of a wider time spread.
 The Rate Card

A publisher’s rate card contains all the information that an advertiser needs
to place an order, including all his rates, copy requirements, and mechani¬
cal requirements. In 1920, the American Association of Advertising Agencies
recommended a Standard Form Rate Card, which is followed to this day. It
is folded to 6 X 3Vi inches, and calls for the information to be given in a
standard numbered sequence.
Most advertising offices subscribe to the Standard Rate & Data Service,
which publishes in full all the rate-card information in monthly volumes, kept
up to date during the month by supplements. Having all the information
standardized in sequence proves its special advantages here. A computerized
service is also available. (A separate service is published for each medium.)

Published Morning, Evening, Sunday Rate Card Number

Publication Address NAME OF NEWSPAPER Issue Date
Telephone Number Effective Date

1- PERSONNEL 4- GENERAL
a. Name of publisher. «. Policy on rate protection and rate revision
b. Names of advertising executives. notice.
c. Name of production supervisor. b. Regulations covering acceptance of
advertising.
2- REPRESENTATIVES c. Policy regarding advertising which simulates
a. Names, addresses, and telephone numbers editorial content.
of advertising representatives.
5- GENERAL ADVERTISING RATES
3- COMMISSION AND CASH DISCOUNT
a. Black and white rates for standard space units.
a. Agency commission.
Bulk and/or frequency discounts.
b. Cash discount.
h. Starting date if sold in combination.
c. Discount date.

6-COLOR - ROP h. Number of progressive proofs required.

a. Color availability — days of week and number i. Registration marks on plates and mats.

of colors available. j. Full page size for direct casting, in inches.

b. Minimum size for ROP Color advertisements. k. Number of mats required for direct casting.

c. Rates for standard units — 1 page, 1500 lines, L Running head and date line for direct casting,

1000 lines — with black and white costs as base if required.

for comparison. m. Bulk or frequency discounts on color.
d. Rates for non-standard units—black and white 7—MAGAZINE SECTIONS
line rate plus applicable flat or % premium. (Name of Section and when issued)
e. Closing dates for reservations and printing a. Rates for letterpress — black and white, color.
material. b. Rates for rotogravure — monotone, color.
/. Cancellation dates. c. Minimum depth and mechanical requirements.
g. Leeway on insertion dates, if required. d. Closing and cancellation dates.

198
 Anatomy of a Rate Card

This is a model rate card, as widely used by newspapers,

based on the Recommendation of the American Association
of Advertising Agencies. The chief features of the card
is that all information is given standardized numbers, and
is listed in standardized sequence. All newspapers follow
the same numbering system and sequence for such infor¬
mation as they have to give. If they have no information
under some particular numbered classifications, they just
skip the number, but do not change the numbering of
the rest of the card.

8- COMIC SECTIONS (When issued) 12- DAILY COMIC PAGES

a. Rates for color units. a. Rates.
b. Minimum depth and mechanical requirements. b. Minimum requirements.
c. Closing and cancellation dates. c. Regulations covering acceptance of
advertising.
d. Closing and cancellation dates.
9- CLASSIFICATIONS
a. Rates for special classifications 13- CLASSIFIED
(amusements, financial, political, etc., a. Rate per word, line or inch; number of words
and special pages.) per line.
b. Minimum requirements.
10- SPLIT RUN
14- READING NOTICES
a. Availabilities and rates.
a. Available pages.
b. Rates and requirements.
11- POSITION CHARGES
a. Availabilities and rates. 15- CONTRACT AND COPY REGULATIONS
a. Regulations not stated elsewhere in rate card.

16- CLOSING AND CANCELLATION DATES g. Screen required.

(Black and White) h. Address for printing material.
i. Other mechanical information.
17- MINIMUM DEPTH ROP
19- CIRCULATION INFORMATION
18- MECHANICAL MEASUREMENTS a. Circulation verification (details in Publisher’s
Statement and Audit Report).
a. Type page size before processing —
b. If unaudited, basis for circulation claim.
inches wide by inches deep.
c. Milline rates, if desired. Daily ,
b. Depth of column in lines.
Sunday
c. Number of columns to page.
d. Number of lines charged to column and to page. 20— MISCELLANEOUS
e. Number of lines charged to double-truck and a. Year established.
size in inches. b. Subscription price; single copy price.
/. Requirements as to mats, originals and c. News services, e.g. AP, UP.
electros. d. Other information not listed elsewhere.

(Standard Form. Rate Card recommended by the American Association of Advertising Agencies, Inc.).

199
OAKLAND CALIFORNIA
Alameda County—Map Location B-6
See SUDS consumer market map and data at begin- Total CZ TrZ Other flat
ning of the Slate. 193,036 100,780 85,866 5,518 3.92
Corporate city population (1970 govt, census) 361,561
Households Population
tSatM 191,959 98.239 88,749 4,856 3.94 Extract of a page
JSun 224,530 113,990 102,420 7,966 3.55
ABC city zone (’70 census). 242,595 646.215
ABC retail ir. zone (’70 census) 295,449 985,353
(*)
(t)
Includes 872—Transportation Terminals.
Includes 115—Transportation Terminals.
of newspaper
♦Metro Area 1-71, see state table 1,093,510 3,148,800 Includes 154—Transportation Terminals.
(*) San Francisco-Oakland.
<t)
For county-by-oounty and/or metropolitan area break¬ rates from
downs. see SUDS Newspaper Circulation Analysts.
TRIBUNE Standard Rate &
P. O. Bex 509, Oakland. Calif. 94604.
Phona 415-273-2000. TWX 910-366-7227. OCEANSIDE Data Service.
San Diego County—Map Location G-ll
See SRDS consumer market map and data at begin¬
ning of the State.
Here all rate cards
Corporate city population (1970 govt, census).. 40,494
fed:* Code I 105 4875 7.00 Households Population are published in
EVENING MONDAY THRU FRIDAY. ABC city zone (’70 census). 18,362 55,438
MORNING SATURDAY, SUNDAY ABC retail tr. zone (’70 census) 46,955 1C3.575 full, giving
1. PERSONNEL
l’res. & Editor—W. F. Knowland.
Advertising Director—Roy E. Boody.
BLADE-TRIBUNE information in
1722 S. Hill St.. Oceanside. Calif. 92054.
General Adv. Mgr.—John W. Carnahan.
Production Manager—Paul McIntosh. Phona 714-722-8222. standardized
2. REPRESENTATIVES and/or BRANCH OFFICES
Cresmer, Woodward, O’Mara & Ormsbee, Inc. numerical
3. COMMISSION AND CASH DISCOUNT
Media Code I 105 4950 8.00
Agency commission 15%: 2% 20th following month.
4. GENERAL RATE POLICY EVENING (except Saturday) AND SUNDAY. sequence for
30-day notice given of any rate revision. Member: Bureau of Advertising, A.N.P.A.
Alcoholic beverage advertising accepted. 1. PERSONNEL each medium.
Publisher—Thomas F. Missett.
ADVERTISING RATES Advertising Manager—Dave Oxley.
Effective October 1, 1970. Advertising Sales Mgr.—Gary Nelson.
Received September 11, 1970. Class. Adv. Mgr.—Pete Doughtie.
5. BLACK/WHITE RATES 2. REPRESENTATIVES and/or BRANCH OFFICES
Flat 1 1,500 1,000 Ward-Grifflth Company, Inc.
per line page lines lines 3. COMMISSION AND CASH DISCOUNT
Daily . .77 1,854.16 1,155.00 770 00 15% to agencies; 2% cash discount 15th following
Sunday .81 1,950.48 1,2!5.00 810.00 month.
FULL PAGE R.O.P. DISCOUNTS 4. GENERAL RATE POLICY
Full page units within 1 year: 60-day notice given of any rate revision.
10 pages. 10% 30 pages. 17% Alcoholic beverage advertising accepted.
20 pages.... 15% 40 pages. 19% ADVERTISING RATES
Discounts apply to pages of 1 product or multiple Courtesy, S.R.D.S.
products under 1 brand name. Discounts applicable to
space and color premium charges. Contract required. CAUTION: NEW RATES
7, COLOR RATES AND DATA
Spot color available daily and Sunday. *Full color EFFECTIVE MAY 1, 1972
daily and Sunday with 2-day leeway required. Mini¬ SEE "FUTURE RATE PAGE"
mum 1;000 lines.
Use b/w line rate plus the following extra cost:
b/w 2 c Effective January 1, 1968.
b/w 1 c or 3 c 5. LINE RATE
1,000 to 1,499 lines.... 35% 600.00 Flat (daily or Sunday), per line- .14
I, 500 to Full page. 35% 850.00 6. COMBINATION RATES
(*) Sunday multiple color available only in Society, Effective November 1, 1971:
(standard); "Entertainment Week,” "California” OCEANSIDE BLADE TRIBUNE AND
(tabloid sections). ESCONDIDO TIMES-ADVOCATE UNIT
Closing dates for multiple color: Complete material Flat 1 1,500 1,000
in Tribune Plant 4 working days before publication. per line page lines lines
Special inks, other than standard colors, 30.00 extra Comb, rate .30 722.40 450.00 30fc0©
(non-commissionable). Combination rate applies when same size unit ap¬
Fluorescent inks 200.00 per color. pears within 2 week period in both papers. Send
3. CLASSIFICATION AND OTHER RATES separate printing material to each paper and inser¬
Automobile and Accessories, Financial, Transportation tion orders to Joe Anthony, Nosadico Newspapers.
& Travel Services, etc., general rates apply. Political P. O. Box 1477, Escondido, Calif. 92025 shewing
—local, state and national candidates and issues. group rate or indicate to run ad in both newspapers.
R.O.P. position—general rates apply; on or facing COLOR RATES AND DATA
radio or TV pages daily .82; Sunday .86. Available daily or Sunday in combination. One day
STRIP ADVERTISING—R.O.P. leeway requested on Wednesday and Thursday inser¬
Daily per agate line .77; Sunday .81. tions. Minimum 1,000 lines.
POSITION CHARGES Use b/w line rate plus the following applicable flat
Next to reading 12-1/2%; full position, (42 line costs: b/w 1 c b/w 2 e b/w 3 c
min.) 25%. Editorial page not sold. Page units, extra. 105.00 210.00
Radio & TV Programs on or facing radio or TV Less than Page... 160.00 265.00 370.00
pages per line, daily .82; Sunday .86. Net Paid—Audited Combined 9-30-71 Max Min
9. SPLIT-RUN Total CZ TrZ Other flat
Available. Minimum 1,000 lines. Flat charge 75.00 ExSat 36,773 25,460 10,746 527 8.02
(non-commissionable). For additional information, Sun 37,378 26,036 10,813 529 7.89
contact general advertising manager. Also sold in combination with Blade Tribune Tri-
10. CLASSIFIED AD RATES City Advertiser (Wednesday) pick-up from daily
15% agency; 2% 15th following month; cash with (same copy) extra .07 per line.
order unless credit established. Circulation Sworn 9-30-69, free 15,397.
.94 per line, daily; 1.07 per line. Sunday. Minimum 7. COLOR RATES AND DATA
2 lines. Blind box charge 3.00. 1 col. width 1-1/2' Available daily. Minimum 1,000 lines.
before processing. Use b/w line rate plus the following flat costs:
Deadline 4:30 p.m. day preceding Tues., Wed., b/w 1 e b/w 2 c b/w S ®
Thurs.; 4:30 p.m. Wed. for Friday; 4:30 p.m. Thurs. Extra ..... 95.00 135.00 175,00
for Sat. and Sun. Sunday Real Estate Section 4:30 Closing dates: Reservations 3 days before publica¬
p.m. Wednesday; Thursday Auto Section 4:30 p.m. tion; printing material 2 days before publication.
Tuesday. Classified Display deadline—contact pub¬ 8. CLASSIFICATION AND OTHER RATES
lisher. Amusements, per inch 2.10. Political, per inch 2.40.
Regulations (see Contents)—C 1, 2, 5, 6. 8. 9, 10, POSITION CHARGES
II, 13 thru 17, 19, 22, 23, P 1 thru 6. T 1, 2, 4. Extra 25%.
11. SPECIAL PAGES. FEATURES 10. CLASSIFIED AD RATES
K% agency; 2% 15th following month: cash with
Food Day: Wednesday.
Fashion, Thursday; Automotive, Thursday Classified; order unless credit established.
Teen Pages. Wednesday and Saturday; Travel, Sun¬ .30 per line; 6 line min. (6 pt.); 5 words per line;
12 lines per inch.
day: Real Estate, Sunday Classified.
12. MINIMUM DEPTH R.O.P.
11. SPECIAL PAGES. FEATURES
As many inches deep as columns^ wide. Over 280 Best Food Day: Wednesday, Entertainment page, Fri¬
lines deep charged full col. 301 lines'. day; TV Section, Sunday; Auto page, Sunday; Real
Estate, Sunday.
13. CONTRACT AND COPY REGULATIONS
See Contents page for location of regulations—items
12. MINIMUM DEPTH R.O.P.
r ~ . ^ m Q1 or •»-» * - many 'roq
 The space contract. Placing an advertisement in a newspaper usually 201
Using
involves two steps: first, agreeing upon the rate terms (the space contract); Newspapers
and second, forwarding the advertisement with an order definitely requesting
insertion (the insertion order). The two steps may be taken at one time, but
each step serves a separate function.
A space contract between an advertiser and a publisher is not neces¬
sarily an agreement to buy and sell a fixed amount of space; it is an agreement
to abide by the prevailing rate card for the contract period for such space as
the advertiser actually uses.

The insertion order. When the advertiser is ready to place his ad¬
vertisement, he forwards an insertion order giving the date or dates upon
which the advertisement is to appear, the size in lines and columns, the posi¬
tion request, and the rate; he also advises how the plates or mats are being
forwarded. The space contract may be made a part of the first insertion order.
In either case, the two steps—contract and order—still serve separate functions.

The Milline Rate

In comparing the cost of newspaper space, two variables enter: the rate per
line and the circulation. To provide a clear basis for computing comparative
costs, a hypothetical figure called the milline rate is used. A milline is what it
would cost per line to reach a million circulation of a paper, based upon its
actual line rate and circulation.
Since virtually all newspapers have either more or less circulation than
an even million, the milline was created to put them on a comparable basis .3

The formula is:

1,000,000 X rate per line

- - -- -= milline
7 7 —7

quantity circulation

as shown in these examples:

A. What is the milline rate of a newspaper with , 2 000,000 circulation

and a rate of $2.00 per line?

1,000,000 X $2.00 _
-= $ 1.00 milline rate
2,000,000

B. What is the milline rate of a newspaper having 350,000 circulation

and a rate of 95^ per line?

3 The milline was the brainchild of Benjamin Jefferson, then advertising manager
of the Lyon & Healy Piano Co., Chicago, in the early 1920’s.
 202 1,000,000 X $.95
Media = $2.71 milline rate
350,000 "

You cannot buy a milline of advertising. It is merely an index figure

for comparing the cost of circulation of different newspapers.
The milline rate at the maximum discount level is called a maxiline,
and at the lowest discount level, a miniline. But milline rate is the basic unit
of comparison.

The Short Rate

If the newspaper charges a flat rate, the advertiser pays that rate for whatever
space he uses. If the newspaper offers space discounts, the advertiser estimates
the amount of space he will use during the next twelve months, and enters a
contract to pay the corresponding rate for whatever space he uses, subject at
the end of the year to adjustment.
For example, let us assume that a newspaper has the following rates:

Open rate . 390

2,500 lines . 37
5,000 lines . 34
10,000 lines . 31

An advertiser estimates (not guarantees) to run 5,000 lines during the cur¬
rent year, and enters a contract at the 5,000-line rate of 34 cents. He is billed
each month for space used at the 34-cent-a-line rate. However, he runs only
3,500 lines during the year, and is entitled only to the 2,500-line rate of 37
cents; there is no 3,500-line rate. There is then an end-of-the-year reckoning,
as follows:

3,500 lines @ 370 . $1,295

Paid 3,500 lines at 340 . 1,190

Short rate due. $105

If the advertiser under such contract earns a better rate at the end of the year,
he gets a rebate for the sum due him.
Some newspapers bill at the open rate only, and give rebates for lower
rates when earned.

Newspaper Sizes and Makeup Restrictions

In newspapers, we have the tabloid-size page and the large or standard-size

page. The tabloid is usually five or six columns wide and 200 lines deep,
 This diagram has been arranged to show different
page positions.

making a full page of 1,000 or 1,200 lines. Most standard-size papers have
eight columns to the page, and a column depth of between 280 and 330 lines.
Each newspaper will have its own restrictions regarding the size and
shape of the ads it will accept. To prevent the use of freak-shaped advertise¬
ments, many publishers require the advertisement to be a minimum depth in
ratio to the column width. The average restriction requires an advertisement
to be 14 lines deep for every column of width. This would not apply to special
strip positions across the bottom of the page, sold by some newspapers.
Another example: If a tabloid page is 200 lines deep, it may say that
any ad over 170 lines deep will be charged for the full 200 lines. (If the ad
were 190 lines deep, the paper would have a hard job selling the other ten
lines to other advertisers.) Likewise, a standard-size paper 300 lines deep
might place the upper limit at 270 lines, before being charged for a full page.
With this in mind, some advertisers, contemplating a full-page ad in

203
 204 a standard-size paper of eight columns and 300 lines, will instead plan an ad
Media 7 columns by 270 lines. They feel they will be dominating the page, and in
fact welcome having some news items in the adjacent columns to attract more
interest to that page. They therefore save the cost of one whole column (300
lines) plus 30 lines on each of the remaining seven columns their ad occu¬
pies, or 210 lines. Total: 510 lines.
In connection with mats: the rule of thumb is that they shrink in
depth 1 line in 50, in the course of newspaper production. A 100 X 2 ad might
end up 98 X 2, a loss of four lines; a 200 X 5 ad may end up 196 X 5, or less,
a loss of 20 lines. These losses are real, as the newspapers charge for space
ordered, and not space filled. Best thing to do is to make mats longer so they
will shrink to the correct size, or specify in the order, "not to exceed so many
lines."

The Black Newspapers

In 1972 there were 203 black newspapers with a total circulation of over
3,900,000, according to a study by Henry La Brie of the University of Iowa.
Of that total, 11 papers have over 50,000 circulation, including the New York
Voice (90,000), the Black Panther Newspaper (100,000), and Muhammed
Speaks (625,000). Of all 203 newspapers, only 17 are audited by the Audit
Bureau of Circulations. The New York Amsterdam News (83,000) is the
top black paper of the ABC audited papers.4 Many of the non-audited papers
have small circulations. All tend to get high readership.

The Audit Bureau of Circulations

The basic source of information about the circulation of a publication is its

ABC report, issued by the Audit Bureau of Circulations, an independent
auditing organization, supported by advertisers, agencies, and publishers.
Over 95 percent of the daily papers belong to the ABC and issue
ABC reports, as do most of the significant magazines. The ABC reports go
into great detail on the quantity of circulation, how secured, and where dis¬
tributed. As mentioned, these reports of statistics are accepted in all adver¬
tising circles. Among the key items to look for in such reports are:

1. What is the net paid circulation?

2. How much of it is in the city area, the wider retail area, and out¬
side of that? If, for example, we had a new product with distribu¬
tion in the city alone, that information would be important.

4 Advertising Age, May 15, 1972, p. 24.

 3. How much of the circulation is fully paid up; how much was ob¬ 205
Using
tained by cut prices or through contests and premiums? The latter
Newspapers
circulation would not be as meaningful as the fully paid-up
readership.
4. How much of the circulation was home or mail delivered? How
much sold over the newsstand? The method of distribution varies
from city to city, but within a city having home delivery such cir¬
culation is advantageous, and those figures are significant.

The ABC reports have nothing to do with the rates of a paper, or the quality
of its circulation. They deal with the circulation statistics. Publishers, however,
will also supply a separate demographic report of readership.

Special Newspaper Representatives

Many publishers have their own special sales representatives in the major
advertising centers to provide the advertiser and the agency with facts about
the market and the competitive merits of a paper. The representative also
provides other helpful services to the advertiser in connection with his mar¬
keting plans and schedules. One representative may handle many different
newspapers, each in a different city. He is paid by the newspapers he repre¬
sents.

A, B, and C Newspaper Schedules

An advertiser selling in many markets will often prepare one newspaper

schedule consisting of the maximum total linage for the largest markets and a
schedule of lesser linage for the smaller markets; he may even have a third
and still smaller schedule to run in the smallest towns. These schedules will
be referred to as the advertiser’s A, B, and C schedules—not to be confused
with the ABC circulation statements.
There are two main reasons for A, B, and C schedules: First, the
largest markets provide the largest volume of sales, hence the largest amount
of money can be invested in them. The newspapers in the largest markets also
carry the greatest amount of advertising and have the highest rates. Hence it
may take larger advertisements and a larger part of the budget to compete
against the other advertising for readership.
As the markets get smaller, the newspapers carry less advertising;
therefore it does not take as vigorous a schedule to tell the message to the
people in that market as it does to tell it to those in the larger markets.
When a newspaper schedule is to be run in markets of different sizes, different
schedules may be prepared to meet their different needs. Note differences in the
population of the A, B, and C markets; also, the difference in the size of the ad¬
vertisements and total investment in each market.
206
 207
Tear Sheets and Checking Copies Using
Newspapers
When a national advertisement has been run, the publisher will forward to
the agency a copy of the page bearing the advertisement, torn out of the news¬
paper, and called a tear sheet or checking copy for magazines. To check a tear
sheet is to examine the page and record on a form whether the advertisement
ran per the instruction and standards of the agency, particularly in respect to
position in paper, position on page, and reproduction. If it did not appear
properly, the advertiser may be entitled to an adjustment, possibly to a correct
re-run of the advertisement, called a make-good, without additional cost.
Most newspapers forward their tear sheets through a private central
office—The Advertising Checking Bureau.

A Record of the Published Advertisement

(Blank No. 4)
After an advertisement Copyright 1920 American Association of Advertising Agencies

is published, a copy of CHECKING RECORD

the actual page or issue MOUTH / 2. => V- 5 i 7 8 7 JO II A3 !3 /s H, 7 !8 ID „1/ Z2.23 ;15 Vm 17 18 .11 3 o.a TOTAL

containing the advertise¬

ment is sent to the ad¬
vertiser. This is known
as a "checking copy’’ or
"tear sheet.’’ A record TO PIJB LIS HE R C)F
ORDER NO.

is kept on a form like CITY AND 3TAiTI

DATE

this.
PLEAlSE PIJB]LIS H ADVERTISING OF (advertiser)
FOR pnDdu ct)
T)ATES OF INSERTION -1
SPACE 1 1 — “II
I

POSITION

COPY KEY CUTS

ADDITIONAL INSTRUCTIONS

RATE

LESS AGENCY COMMISSION PER CENT ON GROSS LESS CASH DISCOUNT PER CENT ON NET

PER --
TOTAL
MOUTH ! a. 3 ¥ sr 6, 7 a •? /o n /a. !3 /¥ IS /i n 18 n 20 a./ 3a as a* as at. XT as 21 30 3/

.
 208 Newspaper Merchandising Service
Media

To merchandise newspaper advertising is to enlist the store support of the

retailers who sell the manufacturer’s products advertised in the newspaper.5
When the schedule is large enough, many newspapers will help the adver¬
tiser "merchandise” the advertising to his trade in that community.
Among the merchandising services most frequently rendered by
newspapers are distribution of advance proofs of the newspaper advertising
to retailers and trade mailings to retailers and wholesalers that call attention
to the forthcoming advertising. Other services include conducting surveys to
check such things as distribution, shelf position, rate of sale, dealer attitude;
preparing portfolios for an advertiser’s sales force; collecting market data;
schedules, proofs, and route lists of retail outlets.

Newspaper Marketing Data

Newspapers offer extensive market information about the communities they

reach, including such data as:

1. Basic statistics of the market. This includes an economic description

of the territory and demographic data on population, as to income
and housing.
2. Consumer sales and brand-purchase analysis. Some newspapers
conduct research showing the degree to which the product is used
in that market and the ranking of the individual brands.
3. Brand-distribution analysis. Such reports show the extent to which
the product is stocked in different stores, regardless of popularity
or latest sales.

Selecting the Paper

In about 190 cities, the advertiser has a choice of two papers. In eight cities,
he has a choice of three or more. Which paper, or combination of papers, to
select?
We regard each city as unique; each has its own newspaper per¬
sonality. The morning paper may be best in one city, the evening paper in
another. We view each city by itself.
We begin by establishing exactly whom we are trying to reach. If we
are advertising, say, heating systems, is it chiefly men? housewives? home-
owners? Exactly what is our market target? We then can compare each of the
newspapers in terms of our target market.

5 Merchandising is one of the many words in advertising used to express different

ideas. See the Glossary.
 BASIC MARKETING DATA—MILWAUKEE SMSA
POPULATION—7/1/69
SALES, INCOME—1969 Automotive Sales ($000). 430,952
Population . 1,468,400
Children, Under 5 . 129,200 Deposable Personal Income ($000).$4,890,720 Gasoline Station Sales ($000) . 151/57
Source. Sales Management Survey of Buying Power, June, 1970
Children, 5 Through 9 . 167,400 Average Family Disposable Income. 11,443
Children, 10 Through 19 .. 308,400 Petal Sales ($000) . 2,832,996 LABOR FORCE—12/31/69
Population (1960 Census) . 1,278,850 Per Household Retail Sales. 5,576 Men in the Labor Force . 410,400
(1) % Native White. 88% Food Store Sales ($000). 532,973 Men Employed . 398,900
(2) % Foreign Bom White. 6% General Merdmiise Stores ($000). 465/85 Women in the Labor Force. 230/00
(3) % Non-White. 6% Women Employed. 221/00
Apparel Stores ($000). 128/61
Source: 1960 Census and The Milwaukee Journal Research
Department Furniture, Hsld. Appliances ($000) . 124/61 Housewives tmpioyed (40%). 174,000
Eating and Drinking Pkxes ($000) . 222/50 Total Labor Force .. 641/00
HOMES—7/1/69
Occupied Dwelling Units... 435,100 Drugstore Sdes ($000) . 73,488 Total Employed. 620,400
Source: Wisconsin Employment Service, Milwaukee
Owner Occupied Homes (68%)... 295,900 Lumber, Budding Material ($000). 85/20
Journal Consumer Analysis, 1970
Renter Occupied Homes (32%). 139,200
Single and Two Family Dwelling Units. 336/20
Multiple Units, Three Family or More . 96,890
Households With Telephones. 387/00 HOUSEHOLD PROFILE—1970
Households With Gas . 338,500 TOTAL HOUSEHOLDS: 435,100
Households With Electricity. 432,900
Households With Television. 430,700 OCCUPATION (Male Head of HouseWd)
INCOME:
Homes Heated With: Gos . 291/00
Under $3,000 ... Prof, and Semi-Prof. 13%
Oil . 121,800
Coal, Coke, Other !!!.!!!!!.!.... 13,100 $3,000-$4,999 .. Mgrs., Officials, Props. 12
Source: The Milwaukee Journal Research Deportment, Consumer $5,00047,999 .. Clerical . 8
Analysis, Public Utilities and Metropolitan Builders' Association.
$8,00049,999 .. Sales . 5
7/1/69
$10,000-$ 14,999 Craftsmen, Foremen. 19
$15,000424,999 Operatives. 17
$25,000 and Over Service Except Domestic . 5
Selling a Market Laborers Except Farm . 4
Retired. 10
as Well as a Paper
AGE (Male Head o( House) Other. 7
18-24 ...
One of the jobs newspapers have 25-34 . a e • t> ® ©
EDUCATION (Head of Household)
in selling their space to national 35-49 ...__
Grade School or Less ........ 18%
50-64 .
advertisers is to convince them 65 and Over ..
1-3 Yrs. High School . 19
Graduated High School. 33
to advertise in the newspaper’s No Man in Household ..
1-3 Yrs. College. 15
market. Hence newspapers pre¬ Graduated College . 15
pare market and demographic AGE (Female Head of Household)
data such as this. 18-24. FAMILY SIZE
25-34 . One Person .. 7%
35-49 . Two Persons. 28
50-64 . Three Persons. 18
65 and Over . Four Persons . 19
No Woman in Household .. . Five or More Persons. 28

Source: Milwaukee Journal Consumer Analysis, 1969-70

MILWAUKEE JOURNAL/SENTINEL
MARKET PENETRATION and EFFICIENCY
PENETRATION
M/Send. Journal JrrL/Senl
Households (M&E) (S) (M4S)
Metro Area (4 Counties) 435,100 99% 79% 99%
Milw. "ADI" (9 Counties) 565,800 79% 69% 90%
ABC Retail Trade Zone 620,900 72% 66% 86%
(11 Counties)
Source: ABC Audit Report, 3-31-70; NCA 1970-1971; S.M.S.B.P., June, 1970
COST EFFICIENCY AAilline (5,000 Line Contr.) $2.78 $2.45 $2.37
Rank Among Major Newspapers in
25 Largest AD is (Lowest is 1) 6th 7th 4th

Source: NCA, 1970-1971; SRDS Newspaper Roto and Data, October, 1970; Journal/Senlinel Rato Elf. 1/1/71.
* The Standard Metropolitan Statistical Area as defined by the Bureau of the Census is Milwaukee, Wauke¬
sha, Ozaukee and Washington Counties.
 210 We have two sources of information to help us: the publisher’s ABC
Media
report of circulation, and his supplementary report of the demographics of
that circulation. The ABC report tells us the size of the circulation, where it
is distributed, how that circulation was obtained. The demographic reports
give an insight into the life styles of the readers—their home ownership,
average income, ethnic background, education, and other glimpses of what
their economic and social life is like.

Color Advertising

ROP color advertising. This is run-of-paper advertising with one,

two, or three extra colors printed at the same time on the same paper, and on
the same presses as the rest of the paper. ROP color printing compounds all
the problems that black-and-white newspaper printing has—high-speed print¬
ing on rough, porous paper, making fine reproduction and close registration
of colors difficult. ROP color is used chiefly for making the ad distinctive
with the aid of bold backgrounds, designs, borders, or headlines in color. It is
not dependable for reproducing a product in colors or for conveying an im¬
pression of quality products. There is an extra charge for color, and papers
usually have a minimum size requirement.

Preprint color pages. If, while turning the pages of your newspaper,
you suddenly come upon a page with a beautiful full-page color advertisement,
printed on paper slightly better than the rest of the newspaper, you are looking
at a page that was preprinted by an outside color-printing plant, in gravure
or by offset. (Some papers print their own.) The page was carefully printed
in advance on one side of the sheet, and the other side was left blank and
forwarded to the newspaper on big rolls, for its own printing of the obverse
side. These are known as HiFi Color or SpectaColor pages (representing dif¬
ferent production systems and effects). The advertiser pays for the cost of the
color plates and printing, in addition to the newspaper space, at the black-
and-white page rate. Because of the cost of the initial plates, preprints are
usually planned for a large run to be used in many papers at about the same
time. Arrangements must be made well in advance, with both the newspaper
and the printing house.

Newspaper-distributed Magazine Supplements

How could we be sure it was a weekend if it weren’t for the colorful maga¬
zine sections in our newspapers to remind us? These sections, known as
syndicated supplements, form a unique medium unto themselves. They pro¬
vide good local coverage, superior color reproduction, high and prompt family
The automatic media plan. The Fourth Major Network.
Were not going to tell you TV’s no good— Nothing gets read like Parade...it’s in
you know better and so do we—but we are 96 newspaper markets...gets into 17million
saying there are too many automatic media homes...has over 30 million readers...reaches
plans being submitted these days. 95% of them in the first week...has fantastic
The pattern is usually the same. Let’s flexibility. The weeklies aren’t even in the same
face it—your budget doesn’t go very far on TV. league. We reach 65% or more of the homes in
It’s a cinch you can’t cover the country, so most of our markets.That makes us look more
the spot TV plan like a majorTVnet¬
probably calls for: work than a weekly.
25 markets And on our
representing 2/3rds IFI WERE A network you won’t
fight the clutter.
of your business. 50
gross rating points a PRODUCT MANAGER And you won’t
be outgunned.
week (about seven
30-second commer¬ FOR A PACKAGE GOODS We'd hate to tell our
miMikiinr
cials) and your
schedule runs for
story in 55 words.
26 weeks. Enough of the
Sound familiar?
Your competi¬
$L5MM, HERE ARE numbers game.
Think about this.
tion probably out-
spends you 3 or 4 to
SOME OF THE THMGS Maybe your
product needs more
1—maybe higher.
He’s got the dollars
I'D THINK ABOUT BffORE than 30 seconds a few
times a week. Any
good writer will tell
to do the national
job, plus enough left AUTOMATICALLY you that’s about 50
to 55 words read fast.
over to heavy up in
key markets. GOING TO TV. 30 seconds go
by pretty quick and
So, you wind
up playing his when they are gone,
game in his ball park where he has all they are gone for good, only the clutter is left.
the clout. But there is something permanent about an ad
in Parade...it gets read.
What can you do about it?
You could use network TV, but you run
Reading day.
into the same problem. The reader spends 60 seconds with each
Plus some others. If you go daytime, you Parade page. Compare that with Reader’s
get a shot at about 65% of the homes— Digest, 38... Good Housekeeping, 29... Ladies’
at most. No matter how much you spend. Home Journal, 37.. .McCall’s, 39. It’s pretty
And on PrimeTime—at $25,000 clear Parade is about the last place you can
per 30-second spot—you can run out of get or afford a “60-second spot.”
money before you get started. And you still It’s because Parade arrives in 96 leading
wind up hitting the heavy viewer—over newspapers on “reading day”—Sunday, when
and over. reading the Sunday paper is as much a tradi¬
So why don’t you hit the competition tion as ham and eggs.
where he isn’t—or at least where he’s weak. So, if I were a product manager with
What you need to do is think “PrimeTime” 81.5MM to spend in the package goods field,
in print—Parade in particular. In Parade before I automatically went to TV, I’d think
you can be a big frog in a big pond because about running a schedule in Parade.
Parade has all the guns. What do you think?

Think Parade.
Inter-media Competition

A newspaper magazine supplement advertisement, addressed to ad¬

vertisers and their agencies, in direct competition with TV.
 212 readership. These supplements are printed in rotogravure or offset color either
Media by the paper itself or at outside central printing plants, and distributed to
newspapers with the newspaper’s name on the masthead. These syndicated
magazine sections are sold by their publishers in terms of groups of cities, to
meet the advertiser’s marketing pattern. Well known among these are Family
Week, with about 270 newspapers and a national circulation of about 8 mil¬
lion, and Parade, with about 100 newspapers and a circulation of about 17
million. Metropolitan’s Sunday Neivspaper Group, or Metro, is totally edited
with a choice of several combinations of papers in different markets; circula¬
tion is around 28 million. Some newspapers, such as The New York Times,
Philadelphia Inquirer, Chicago Tribune, and Los Angeles Times, have their
own local magazine supplements. Other newspapers give their readers both
a syndicated magazine supplement and their own. Magazine supplements are
frequently used for special drives featuring premiums and for other promo¬
tional offers.

Comics

The Sunday comic supplement appearing as a part of most weekend news¬

papers is an important family institution, with a total audience estimated at
111 million readers. What may be surprising is that adults of 18 and over
comprise 72.4 percent of the total audience; teenagers between 13 and 17, 11.1
percent; and children from 7 to 12, the other 16.5 percent.6
Space in comics can be bought through newspaper-comic groups, each
representing a single weekly comic syndicated to different newspapers. Space
may be bought in papers on a national or sectional basis, such as in Puck, with
a total circulation of 15 million, and in Metro Sunday Comics, with a total
national circulation of 23 million. An advertiser can also buy space in other
syndicated comic sections, which may be purchased individually by markets.
Space in the comic publications is usually sold in terms of a page or fraction
of a page. Some papers now print their comics in rotogravure.

Split Runs

For advertisers who would like to test different ads for the same product,
Sunday magazine supplements offer a split run. By this method, an advertiser
prepares plates of two or more ads of the same size to be run on the same day,
each representing a different appeal, each with a coupon with its key number,
calling for a reply. The plate for one ad is included on the pages printed on
Press A; the plate for the second ad is included on the pages printed on
adjacent Press B. Both presses feed alternately into a common stacking of

6 Bureau of Advertising.
newspapers—that is, newspapers that are distributed in the same neighbor¬ 213
Using
hood to the same type of readers. The only difference is that of the ads. The Newspapers
advertiser can then tell from the coupon responses which of the two ads
pulled better. (We go into this matter further in the discussion of advertising
testing, later in the book.)

Preprinted (Loose) Inserts

A practice that has zoomed into one of a newspaper’s important sources of

income is the loose, separate preprinted insert, ranging from a single eight-
by-ten-inch sheet to a section of tabloid-size pages running to 32 pages, or
even more. It is printed in advance of the time the newspaper is printed, by
an outside printer, and delivered to the newspaper to insert loosely in the
regular printed editions.
The advertiser must supply the printed inserts, bearing on the first
page "Supplement to [name of paper]” for second-class postal reasons. At
first, papers accepted reprints for Sundays only; now some are accepting
them four days a week. In some cities, an advertiser can buy circulation in
specific sections of his city, at a fixed cost per thousand.
The preprint is designed for quick response. It is being used widely
by retail stores, by national advertisers in promotions with coupon redemption
offers, and very largely by direct response advertisers as a reaction to in¬
creasing postal rates for direct mail. Some now have a reply card tip-in which
is mechanically affixed to the advertising page.

Weekly Newspapers

America was a country of weekly newspapers before it became a daily-

newspaper land, and to this day there are about 8,000 weekly newspapers
with a combined circulation of about 29 million. About two thirds of the
papers are urban-oriented, published in communities in the metropolitan
areas, or in the suburbs and in the satellites of the suburbs; one third are in
farm communities. Seventy-eight percent of the urban circulation is among
homeowners, 86 percent of whom live in single-family homes. Fifty-four
percent have children under 18. Their median income is almost 20 percent
higher than the national average.7
Weekly newspapers have high readership because of their local news
(if a publication has less than 25 percent news it is deemed a shopping news¬
paper), because they carry much local advertising, and because they are
around for a whole week. National advertisers often use suburban papers to
round out a promotion or campaign they are running in the dailies of a city.

7 Starch 1969 Annual Media Study of Primary Audiences.

 214 They are usually offered as part of a group of papers within the same
Medici geographical market. The Suburban Press of Chicago, for example, offers a
flat rate for a group of 82 separate suburban papers, combined circulation
541,000. The Pickwick Publishing Company of Chicago offers its suburban
papers in terms of separate groups averaging six papers each. Milline rates
are higher.
Many papers are circulated on a free basis, to reach as many people
in an area as possible; other papers are on a paid basis. Some papers have both
kinds of circulation. The Los Angeles Suburban group, for example, with
about 1.2 million circulation, has about one fourth paid subscribers, three
fourths unpaid.
National advertisers usually buy weekly newspapers through special
weekly newspaper representatives, representing large lists of papers. An ad¬
vertiser picks his territory or territories, places one order, gets one bill, and
pays one check—a great facility for handling a medium that reaches into the
homes of so many different communities.

Trends in Newspapers

In I960, total newspaper-advertising expenditures were $3,703 million; in

1970, they were $5,745 million, for a total gain of 55 percent. During this
time, national newspaper advertising had a gain of 21 percent; local news¬
paper advertising had a gain of 65 percent.8
During this period also, the number of newspapers dropped, but
their total circulation increased. There was a drop-off of papers in the metro¬
politan areas, but there was a great proliferation of papers in the suburbs and
in the satellite communities.
Two conspicuous advances were made in the use of newspapers: First
was the increased use of HiFi and SpectaColor advertising. The second big
development has been the growth in the loose preprinted insert, for quick-
response advertising, representing everything from a two-page circular to a
full-page-size insert averaging 32 pages. There has been no evidence to sug¬
gest that these trends won’t continue.

8 See p. 121.
 215
Using
Newspapers

Why SAS Went 95% Newspaper

A case report on the use of newspapers

You have $1.5 million to spend on advertising media. Your direct com¬
petitor has over $30 million. Numerous other competitors (national and
regional) join the fray in all-out battle. How do you compete?
This was the challenge that confronted Scandinavian Airlines adver¬
tising manager William H. Bender when he arrived last year in the Queens,
N.Y., headquarters of the North American Division of SAS. . . .
His decisions: Stay out of TV (on the ground that there wasn t
enough money to match the competition in that medium). Concentrate in¬
stead in broad-appeal media where he could look important.
Bender’s reasoning: "In order to get impact, you have to concentrate
your advertising messages.
"If you have a large budget . . . you can concentrate on vertical
audiences and buy the media that appeal to them while you do the broad-base
job.
"But if you have a small budget, you can’t segment the approach be¬
cause the total portions of the population you can afford to reach are too
tiny. Therefore, you have to choose major media in which you can appear
with a size and frequency sufficient to make you important."
As far as Bender was concerned, this meant newspapers and radio:
"Where SAS can buy equal or greater weight locally, compared with other
carriers"—and concentrated in peak selling periods. . . .
The choice of newspapers as base medium for SAS was also related
to needs exposed by some hard-nosed market research. . . .
1. The bulk of the travel was coming from essentially the same
people. They tended to be over 35, college educated, over $20,000 in income,
in the professions or business management, and had been to Europe more
than once, usually because of a Scandinavian background or related business
interests.
2. Very few people seemed to know what SAS stood for.
3. On the other hand, attitudes toward Scandinavia were highly
favorable. Americans seemed to like the people of the region, ranking them
high in reliability, cleanliness, humor, appearance. . . .
The job ahead, then, was to expand the passenger base while retaining

Excerpted from Media Decisions, August 1971. Courtesy Media Decisions.

 216 the hard-core repeat group; to go after younger people in their late twenties
Media
and early thirties, special interest groups, and especially that broad mass of
American tourists who are visiting Europe for the first time.
This called for putting Scandinavia into head-on competition as a
first-trip destination with the traditional tour magnets of Paris, London, Rome.
A tough job because, according to an SAS spokesman, "these great capitals
are part of the educational tradition of the United States, while Scandinavia
remains on the periphery, despite the heavy concentration of Scandinavia
stock in the midwest." He notes that there is not one full-time American news
correspondent in any of the three countries—Sweden, Norway, Denmark.
Bender’s second objective became: To build a public awareness of
SAS, so that the letters would be immediately recognized. This meant the
campaign had to have "eye appeal."
Previous advertising had been designed to appeal to the middle-in¬
come, middle-aged, repeat traveler through upper-level magazines. It had
been effective for that purpose. But Bender felt it was time to put SAS into
a broad-appeal medium. He sought an audience profile that would coincide
with that of the broad base he was going to attempt to attract.
"The profile of the newspaper was right,” he says. "The newspaper
hits the whole age group. The chances are that if a person doesn’t read a
newspaper, he isn’t a prospect for us anyway."
About 75% of Bender’s first SAS budget thus went to newspapers.
The remaining 25% was reserved for "opportunity buys,” largely in radio.
Bender is prepared to move should an appealing TV special come
along at the right price. He’s interested in the possibility of obtaining "a
strong, though partial, sponsorship which would allow solid merchandising
down to the travel agency level.” . . .
Bender admits that in magazines he could also achieve a position of
equality or near-equality with the airline giants in specific publications. But
newspapers and radio give him a combination of spot and operational flexi¬
bility.
"In the airline business," he points out, "you are really doing a com¬
bined national and regional advertising job.” There are several SAS campaigns
going at the same time, all subject to change on short notice. The national
copy tells the general SAS story, while specific marketing area route and
schedule promotions are geared to local sales needs.
"The North American Division is responsible for the advertising of
seven great areas covering the Western Hemisphere. Each has its gateway
city from which the SAS planes take off and return. And each has somewhat
different advertising needs.
For example, in the East, primary emphasis is on the only daily non¬
stop service to both Bergen and Copenhagen, and daily direct service to
Stockholm. . . .
In Chicago there is a large ethnic market to draw from. Minneapolis
draws on the Scandinavian ethnic groups which feed into the Chicago gate¬ 217
Using
way, and Chicago itself promotes the large Polish market. Primary destina¬ Newspapers
tions for promotion here are Scandinavia, Eastern Europe and the Middle
East. . . .
The West Coast promotion points elsewhere. Primary emphasis is on
the "shortest route," the Polar route. SAS promotes travel from Los Angeles
to London, Paris, Amsterdam, and the Mediterranean via Copenhagen.
There are daily flights from that city and Seattle. . . .
The basic newspaper ad size is two thirds of a page, running a little
better than one per week in the gateway cities—New York, Montreal, Chi¬
cago, Seattle, Boston, New Orleans, Los Angeles—and with varying fre¬
quency in the "feeder" cities. The size permits Bender to dominate the page,
he feels, and to benefit from adjacency to editorial matter. It also enables him
to get a better frequency than he could with the higher-cost full page. . . .
Bender visits with each area manager, who is a member of the com¬
pany’s Management Council and is totally responsible for SAS operations in
his area, and is informed of the manager’s sales goals and plans and of the
routes he wants to stress. From the input of the seven managers, Bender
fashions the specifics of the media plan.
Through this system, Bender believes SAS is achieving the flexibility
it needs for what is essentially a local and regional operation. Newspaper
themes are varied to match local interests. And this summer a special cam¬
paign in radio was added to tap a special marketing opportunity: young
people with a yen to visit Copenhagen.
Copenhagen is the current mecca for young travelers. And radio "is
the most effective line of communications to today s 20-to-25 set, says SAS
director of marketing services Raoul Vincent. "Naturally, we are especially
interested this year in getting the attention of the 20- through 2 5-year-old,
single, business and professional people of both sexes. They qualify for SAS
youth fares."

Review Questions

1. What are the major advantages of 3. How do local rates compare with
newspapers ? Limitations ? national rates ? What reasons are
given for the difference?
2. Give a brief definition, explanation 4. What is the difference between vol¬
or description of: ume discount and frequency dis¬
a. display advertising count ?
- b. classified advertising
c. ROP 5. What is the difference between a
d. tear sheet preprint color page and a syndicated
e. page make-up color magazine supplement ? Who is
f. split run responsible for the printing of each ?
 218 6. What is the difference between a 9. What does the newspaper Mer¬
Media milline rate and a short rate? How chandising Service do?
is each computed?
10. What considerations enter the choice
7. What is the Audit Bureau of Cir¬ of one newspaper in a two- or three-
culations ? newspaper city?

8. What are the important things in 11. In the report of the SAS Airline ex¬
an ABC report for an advertiser to perience, why were newspapers par¬
look for? ticularly appropriate?

Reading Suggestions

Advertising Age, "Newspapers: 1970,’’ Ferguson, James, The Advertising Rate

a special section, April 20, 1970, p. Structure in the Daily Newspaper In¬
43. dustry. Englewood Cliffs, N.J.: Pren¬
tice-Hall, Inc., 1963.
Advertising Research Foundation,
A
McClure, Leslie, and Paul C. Fulton,
Study of the Opportunity for Ex¬
Advertising in the Printed Media.
posure to National Newspaper Ad¬
New York: Macmillan Company,
vertising. New York: Audits &
1964.
Surveys Co., 1964.
Petrof, John V., "Newspaper Advertis¬
Barton, Roger, The Handbook of Adver¬ ing and the Negro Market,” Journal
tising Management. New York: of Retailing, Spring 1970, pp. 20-31.
McGraw-Hill, 1970.
Stewart, John B., Repetitive Advertising
Bureau of Advertising, What Can One in Newspapers. Boston: Harvard
Newspaper Ad Do? New York: University Graduate School of Busi¬
Bureau of Advertising, 1969- ness Administration, 1964.
 10
Using Magazines

Magazines first made'national advertising possible in the 1870’s, and in

all the years since, have continued to be a major medium. But changed life
styles, the impact of television, the computer, and target marketing have com¬
pletely changed the role of magazines as a marketing tool. However, that’s get¬
ting a bit ahead of our story.

Features and Advantages

Magazines are a selective medium. Most magazines are written for spe¬
cific people who have certain tastes and interests in common, and who
will provide an identifiable market for the advertiser. Just to name a few pub¬
lications will immediately bring to mind the different type of person for
whom each is published: Playboy, Atlantic Monthly, Good Housekeeping,
Seventeen, Popular Mechanics, Sports Illustrated, Field and Stream, Fortune,
Ebony. Reader’s Digest is an example of a mass general magazine—edited,
however, within a recognizable editorial framework. Every editor has a pile
of proposed manuscripts that he reads with one question uppermost: Is this
for our readers?”

Magazines are designed to be read in a leisurely manner. The ad¬

vertiser has a chance to tell an informative selling story of his product. Since
weekly magazines are around the house for at least a week, and monthly maga¬
zines for at least a month, the advertisement has a good chance of being read
and reread.

Magazines are outstanding for controlled color and black-and-white

reproduction. Some of our most beautiful contemporary color and graphic
work appears in the magazines, with their fine plate and press work. To the
advertiser to whom color is important in depicting his product, and to all
advertisers who want to enhance their advertising with exquisite color work,
this is significant. The color reproduction in magazines is among the finest
available in any medium.

219
 220 Geographical and demographic editions. Most large-circulation
Media
magazines are available in geographic/demographic editions to meet the
advertiser’s target marketing goals. This represents a departure from the for¬
mer monolithic national circulation concept, which for a long time had
characterized nationally circulated magazines. Time offers 136 city and state
editions (aside from its international editions). National Geographic has ten

Time Demographic Editions

Covering 185 countries in 113 U.S. Metropolitan editions.

IF YOU WANT THE WORLD. BUY IT w

Or if you want just one small trations by cities, states, countries or

part, buy that. continents. Only TIME can give you
You can do either, or both, or just a total media system in one magazine,
about anything in between, with the with all its unique advantages in
TIME Media System. discounts, production savings, and
You can cover your best cus¬ synergistic impact.
tomers in 185 countries at a single No wonder advertisers around
global rate, or zero in on selected the world invest more in TIME than
targets with, say, any of 113 U.S. in any other magazine.
metropolitan editions. So take a look at the TIME table
But only with the TIME Media below with your own marketing
System. No other publication offers objectives in mind. See where you
this kind of advertising flexibility with want your advertising to go. Put these
the same editorial background, in editions together in any combinations
English, from Minneapolis to Milan. you choose. Then let TIME put your
Most magazines are too small to message where your market is.
segment their circulations much at all. And if you don’t have a TIME
And the only other large magazine representative handy to consult,
with international editions changes call Dean Hill, (212) 556-2091, TIME,
language for its non-English-reading Time & Life Building, New York,
audiences. N.Y. 10020.
Only TIME combines size and
selectivity worldwide. Only TIME
attracts educated people in such num¬
bers that it can deliver big concen-
TIME
Where ideas get response
sectional editions. The Ladies’ Home Journal offers its magazine in 60 221
Using
separate markets—a local magazine in each. These are referred to as geo¬ Magazines
graphical editions—virtually regional or local magazines. They permit
market-by-market programming, local testing, and listing of local dealers
in the respective editions.
Time has separate demographic editions for doctors, educators, and
college students. Some magazines select subscribers living in the affluent parts
of the communities, as identified by their zip codes, and offer that as a
demographic buy. House & Garden has a "Home Movers” edition, repre¬
senting subscribers who jiave moved in the past month (culled from its own
notices of address changes).
Many magazines offer split-run editions whereby an advertiser can
test different ads in the same issue in the same size space, in different press
runs of the same edition.

Limitations and Challenges

But magazines, like other media, have their limitations. Even large-circulation
magazines do not reach many people whom the advertiser may want to
reach. Magazines prove costly per thousand in reaching broad masses of
people where selectivity is not of the essence. Magazines have early closing
dates—sometimes two months for color plates in a monthly (although weekly
magazines often have a fast closing date). But of course, not every advertiser
has to have his advertisement appear immediately.
Special editions have limitations, too. The number of pages per issue
available for special editions is limited; plans must be made well ahead. The
forms close before the regular ones do. The cost per thousand is higher than
for the full run in the main book. Some publishers have regional editorial
matter to go with the regional editions; many do not. The result is that all the
regional advertising for that edition is bunched together in the book, with
ad facing ad, placement that does not help the readership of the advertise¬
ments.

Magazine Elements

Magazine sizes. The page size of a magazine is the type area, not the size
of the actual page. Advertisements that cover the entire page area out to its
very edge, with no margin, are called bleed pages (opposite). An advertise¬
ment can also bleed on three sides only. These are used by advertisers to gain
extra attention and impressiveness. Bleed pages usually cost more than non¬
bleed pages. For convenience, the sizes of magazines are characterized as
 -

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Bleed on Three Sides

A bleed advertisement is one where the background runs right off the edges. A full
bleed advertisement runs off all four sides. This advertisement is bled on only three
sides, allowing margin at the bottom where this type is set. An advertisement can
also be bled on two sides.

222
large size (about 9" X 12", like Better Homes & Gardens), standard size 223
Using
(about 8" X 10", like Time), and small size (about 4%" X 6V2", like Reader’s Magazines
Digest). When it comes to ordering plates, it is necessary to get the exact
sizes from the publisher’s rate card.

Space designations. The front cover of a magazine is called first

cover page. This is seldom, if at all, sold in American consumer magazines.
The inside of the front cover is called the second cover page; the inside of the
back cover is the third cover page; the back cover is the fourth cover page.
Cover pages are highly desirable positions for national advertising. There is a
premium for back cover position.
Space in magazines is usually sold in terms of full pages and fractions
thereof, as half page, three columns, two columns, or one column. There is
also a line rate for smaller units.
A half page in a magazine may be vertical or horizontal. Some maga¬
zines do not accept horizontal half-page advertisements or, when they do, may
make an extra charge. This difference in shape is important in planning and
designing half-page magazine advertisements. Large-size magazines also offer
space to be used in various ways, as indicated on the accompanying diagram.

Junior units. Some ingenious publisher of a large-size magazine

discovered he could get more business if he accepted the plates already ap¬
pearing in a standard-size magazine (saving plate costs). However, it was
an odd unit of space for which to set a price. It wasn t a half page, and it
wasn’t two thirds of a page; actually it was about 61 percent of a page. But
someone with a fine sense of semantics and merchandising came to the rescue.
"Lgps call this a Junior unit, he said, and a special flat rate was set for that
unit of space; and that’s how a full page of a smaller-size magazine when
placed on a full page in a larger-size magazine is known today.
The Junior unit is usually placed on a page with no other advertising,
therefore, it is an economical way of dominating a page. Some advertisers still
prefer to run full pages in the belief that the additional prestige is worthwhile.
Not all magazines sell Junior units. To give an idea of comparative costs, the
rates for the Ladies’ Home Journal are as follows:

1 page, 4 color $37,000

Junior size 27,000
V2 page 19,000

Gatefolds. Perhaps you have turned to a page in a magazine only to

discover that it is an extended page, folded over to fit into the magazine. This
folded-over area may range from a fraction of a page to two or more pages,
and is called a gatefold. You can also have a gatefold cover. Gatefolds provide
advertisers with the most elaborate use of magazine space, useful in making a
1/2 PAGE VERTICAL 1/2 PAGE HORIZONTAL ISLAND POSITION

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CHECKERBOARD 2 OUTSIDE 1/2 PAGES

GATEFOLD Various Ways of Using Magazine Space

spectacular announcement. Not all magazines offer gatefolds; when available, 225
Using
they are sold on a premium basis. Magazines

Cards and detachable inserts. You may have come across a mailing
card or a coupon, bound between the pages of a magazine, that is good for a
sample, or perhaps you have found a whole booklet of helpful hints or recipes
that you could readily tear out. These devices are effective in getting direct
responses, also in distributing booklets or samples at low unit cost. One maga¬
zine carried a thin plastic phonograph record. Now there is a "microfragrance
coated overlay, which can be scratched to give forth the fragrance of the
product. The use of inserts in connection with page advertising must be
planned well in advance.

Magazine dates. There are three sets of dates of which to be aware

in magazine scheduling: the cover date, the date appearing on the cover; the
on-sale date, on which a magazine is issued (the January issue of Esquire is
on sale December 3, important to know in scheduling); and the closing date,
on which all material must be in the hands of the publisher to be included in
a given issue. All dates are expressed in relation to the cover date.

How Space Is Sold

Magazine rate structure. Each publisher issues a rate card quoting the costs
of advertising space in his magazine. The rate card of one weekly reads like
this:

Black/White
1 page (3 columns) $3,700.00
Double column (% page) 2,700.00
Single column 1,350.00
y2 column 675.00
Agate line 9.25

The listing above is the one-time rate. The card continues to give the rate for
13, 26, 39, and 52 insertions. (The units for giving discounts in weeklies is
13). The card gives comparable rates for color.
Whereas in newspapers, rates are compared in terms of millines, in
magazines they are compared in terms of cost per page per thousand circulation.

Ordering magazine space. The purchase of space in a magazine

usually entails two steps: a space contract and an insertion order. A space con¬
tract is an agreement on the rates to be paid for whatever space is used in the
coming year. As with newspapers, it is an agreement on the rate schedule; it
 1 page-- 10,850. 13,560. 16,275.
Playboy Circulation: A.B.O. 6-30-71—1.526,044.
CENTRAL EDITION
States: Ohio. Indiana, Illinois, Michigan, Wisconsin, Extract of a page
Kentucky, Minnesota, Iowa, Missouri, North Dakota,
South Dakota, Nebraska, Kansas.
Rates f b/w 2 color 4 color of magazine rates
1 page... 8,815. 11,025. 13,225.
Media Code 8 468 0900 2.00 Circulation: A.B.C. 6-30-71—1,328.407. from Standard
Published monthly by Playboy Enterprises, Inc., WESTERN EDITION
919 N. Michigan Ave., Chicago, Ill. 60611. Phone
312-642-1000.
States: Washington, Oregon, California, Montana,
Idaho, Wyoming, Colorado, New Mexico, Arizona,
Rate & Data
Advertising Office— 405 Park Ave., New York, N. Y. Utah, Nevada, Alaska, Hawaii.
10022. Phone 212-688-3030. Rates: b/w 2 color 4 color Service. Here all
For shipping info., see Print Media Production Data. 1 page.. 8,280. 10,350. 12,420.
PUBLISHER’S EDITORIAL PROFILE
Circulation: A.BC. 6-30-71—1,192,250. rate cards are
SOUTHEAST EDITION
PLAYBOY is a magazine of entertainment—offering States: North Carolina, South Carolina, Georgia,
fiction, serious and satirical articles, cartoon, and Folrida, Tennessee, Alabama, Mississippi.
published in full,
picture stories of pretty girls; including service fea¬ Rates: b/w 2 color 4 color
tures such as: monthly articles on male fashion, 1 page. 3,725. 4,655. 5,590. giving
food and drink, gifts and other merchandise, travel, Circulation: A.B.C. 6-30-71—543,361.
and, less regularly, apartment and office furnishings, information in
automobiles, sports, and other leisure and avoca- SOUTHWEST EDITION
tional interests. The editors review books, records, States: Arkansas, Louisiana, Texas, Oklahoma.
movies, legitimate plays, restaurants, night life. Rates: b/w 2 color 4 color standardized
Approximately one third of the editorial pages is 1 page. 2,900. 3,625. 4,350.
Circulation: A.B.C. 6-30-71—410,204.
purchased nonfiction, including one interview or panel
discussion in every issue. Fiction comprises one sixth,
numerical
DISCOUNTS
picture stories another sixth, and service and regular Advertisers who run in 3 or more Regional Editions
departments the remaining third. of the same issue are entitled to a 5% discount on sequence for
1. PERSONNEL such advertising in addition to regular space, spread
Ed. & Pub.—Hugh M. Hefner. ami renewal discounts. each medium.
Advertising Director—Howard W. Lederer. (N Y.).
Assoc. Advertising Manager—Jules Kase, (N . Y.).
Assoc. Advertising Manager—Joseph B. Guenther, 6. COLOR RATES 2 color 4 color
Jr. (N. Y.) 1 page. 34,375. 38,950.
Production Manager—John Mastro, (Chicago). 2/3 page.... 25,135. 28,735.
2. REPRESENTATIVES and/or BRANCH OFFICES 1/2 page... 19,600. 22,795.
New York 10022—Jules Kase. 405 Park Ave. Phono 1/3 page. 13,110..
212-688-3030. 7. COVERS
Chicago 60611—Sherman Keats, 919 N. Michigan 4th cover (4 color)._..... 48,685.
Ave. Phone 312-642-1000. 9. BLEED
Detroit 48202—William F. Moore, 818 Fisher Bldg. Extra .... 10%
Phone 313-875-7250. No charge for gutter bleed on spreads.
Atlanta—Pimie & Brown. Courtesy, S.R.D.S.
Los Angeles, San Francisco—Perkins, Stephens, Von 10. SPECIAL POSITION
Der Lieth and Hayward. Orders specifying positions on request basis only,
London—Joshua Powers Ltd. however, specified position not guaranteed unless ap¬
proved by Advertising Director in letter separate
S. COMMISSION AND CASH DISCOUNT from acknowledgment.
15% to agencies; 2% 10 days from invoice date.
Net 3G days. Bills rendered on the 1st of month 11. CLASSIFIED AND READING NOTICES
preceding date of issue. DISPLAY CLASSIFICATIONS
Mail Order—regular rates apply. Details available.
4. GENERAL RATE POLICY National and Regional Edition advertisers whose re¬
Orders beyond 3 months at rates then prevailing. tail over-the-counter sales exceed 50% of their gross
No conditions, oral or printed on the contract, order, business receive a 20% discount in lieu of all other
or copy instructions, or elsewhere, other than those discounts.
set forth in, or incorporated by reference into, pub¬
lisher’s rate card, will be binding on the publisher. 14. CONTRACT AND COPY REGULATIONS
See Contents page for location—items 1, 2, 4, 7, 8,
ADVERTISING RATES 10. 11, 12, 14. 19, 20, 21. 24, 25. 27. 30, 34, 35. 36.
Bates effective October, 1971 issue. 37. 39.
Rates received April 12, 1971. 15. MECHANICAL REQUIREMENTS
For complete, detailed production information, see
5. BLACK/WHITE RATES SRDS Print Media Production Data.
STANDARD UNITS Trim size: 8-3/8 x 11-1/8; No./Cols. 3.
1 page- 27,500. 1/3 page__ 9,985. Binding method: Saddle Stitched.
2/3 page.. 19,665. 1/6 page.. 5,080. Colors available: Matched; 4-Color Process (AAAA/
1/2 page—. 15,265. 1 inch.. 1,045. MPA); Simulated Metallic.
HALF CIRCULATION Cover colors available: 4-Color Process (AAAA/
Half-Circulation Run for ads appearing in every 2nd MPA).
copy throughout national print run, for any given DIMENSIONS—AD PAGE
issue. Orders for half circulation runs non-cancellable 1 7-1/16 x 10 1/2 7-1/16 x 4-15/16
after 90 days prior to closing date. One page Half¬ 2 coL 4-11/16x10 1 col. 2-1/4 x 10
circulation counts as 1/2 page for Bulk and Renewal
discount. 6. ISSUE AND CLOSING DATES
Rates: b/w 2 color 4 color Published monthly. -Closing-
1 page... 15,815. 19,765. 22,400. B/W 4-oolor &
Circulation: Effective October, 1971 issue, rates based Issue: On sale 2 color regional
on circulation of 2,625,000. Oct/71 ...... . 9/14 7/20 7/10
Nov/71 ... . 10/12 8/20 8/10
SPACE DISCOUNTS Dec/71 ... _ 11/11 9/20 9/10
Discounts apply to aggregate space used within 1 Jan/72 .. __ 12/10 10/20 10/10
year from date of 1st insertion. Feb/72 . ....... 1/12 11/20 11/10
Discount Discount Mar/72 ... . 2/11 12/20 12/10
6 pages- 5% 18 pages_ 15% Apr/72 ....__ 3/16 1/20 1/10
12 pages_ 10% May/72 . . 4/13 2/20 2/10
4th covers and special units not subject to discount, June/72 . . 5/13 3/20 3/10
but may be counted within a schedule to earn dis¬ July/72 .. . 6/15 4/20 4/10
count on other space. Aug/72 .. 7/13 5/20 5/10
Spreads- Entitled to either 10% discount from the 1 Sept/72 ..... 8/12 6/20 6/10
time rate, or to earned space discount, whichever is Cancellations or changes in orders not accepted after
larger. Not applicable to spreads off inside covers. closing date and none may be considered executed
Spreads count as two pages when computing discounts. unless acknowledged by publisher. Orders for back
RENEWAL DISCOUNTS covers, special units and half circulation runs non-
Available to advertisers whose aggregate corporate cancellable after 90 days prior to color closing date.
space in any calendar year equals or exceeds space 17. SPECIAL SERVICES
run in previous calendar year. Minimum 2 pages A.B.C. Supplemental Data Report received 11/25/70.
or equivalent in previous calendar year. 18. CIRCULATION
1st renewal year.- 2% Established 1953. Single copy 1.00 (except December
2nd renewal year_ 3% and January 1.50); per year 10.00.
3rd renewal year.. 4% Summary data—for detail see Publisher's Statement
4th renewal year.-- 5% CPM—B/W 4.63.
Additional renewal years- 5% A.B.C. 6-30-71 (6 mos. aver.—Magazine Form)
Renewal years must be consecut*7e. Renewal discounts Total Non-Pd Paid (Subs) (Single) [Assoc]
apply after deduction of Space discounts. Back covers 5,939,968 31,785 5,908,183 1,402,089 4,506,094 .
and special units not subject to Renewal discounts
but count toward earning Renewal discounts on other TERRITORIAL DISTRIBUTION 2/71—5,977,278
space. N.Eng. Mid.Atl. E.N.Cen. W.N.Cen. S.AtL E.S.Cen.
5a GEOGRAPHIC and/or DEMOGRAPHIC EDITIONS 319,577 944,485 959,748 347,741 730,633 171,071
EASTERN EDITION W.S.Cen. Mtn.St. Pac.St. Canada Foreign Other
States: Maine, New Hampshire, Vermont, Massa¬ 396,317 256,468 971,986 351,806 327,501 199,945
chusetts, Rhode Island, Connecticut, New York. New
Jersey, Pennsylvania, Delaware, Maryland, District Publisher states: Effective October, 1971 issue,
of Columbia, Virginia and West Virginia. "Rates based on circulation of 5,250,000.”
Rates: b/w 2 color 4 color (S-C)
is not a commitment for any given amount of space unless it is specifically 227
Using
noncancellable. It serves also to protect the advertiser against rate increases Magazines
during the year.
Whenever the advertiser is ready to order space, he sends an insertion
order for the space he wants. A space contract is often combined with the
first insertion order.
A publisher might give a frequency discount, to reward those who ad¬
vertise more often during a twelve-month period; thus:

13 times 5%
'26 times 10%
39 times 12%
52 times 16%

As an alternate to a frequency discount based on the number of

times space is used, a publisher may allow a discount based on the total
amount of business placed in a year, called a bulk discount, as follows:

13 pages or more 7%
26 pages or more 12%
39 pages or more 16%
52 pages or more 20%

The foregoing discounts, frequency and bulk, are the most common.
Publishers are continually devising special discounts to entice the
large advertisers. The discounts are called by terms such as corporate discount,
renewal reinvestment discount, brand discount, and so on. There is no need
to memorize these terms; they are not standardized. Just remember that such
discounts exist. Would you like a nice 36 percent discount in one of our
magazines? Just spend $1,527,750!
All magazine rates are based upon the guarantee that a certain num¬
ber of copies will be distributed, a number known as the circulation rate base.
Most large magazines supply circulation statements verified by the Audit
Bureau of Circulation (the ABC reports). These statements also supply much
data about the distribution of the circulation, and most important, how that
circulation was obtained—e.g., at regular or special subscription prices.

The magazine short rate. As we have mentioned, a space contract

is an agreement on the scale of rates to be charged for such space as is used,
unless it is a noncancellable contract (possibly for a special position). An
advertiser’s rate is finally computed at the end of the year, based upon what
he actually ran, regardless of the rate, based on his original estimate, at which
he was billed during the year. For example, let us assume that the following
are the rates for a black-and-white page in a monthly magazine:
 228 1-time rate $1,000
Media
6-time rate 950
12-time rate 850

The advertiser starts off believing he will run twelve times during the year,
entitling him to the $850 rate, and enters upon a space contract accordingly.
Every time the advertisement runs, he is billed $850. However, he decides to
skip the last two insertions that he had previously planned, and runs only ten
times. Therefore, he did not earn the 12-time rate. The rate he earned was the
next best rate, or the 6-time rate of $950 (there is no 10-time rate). The
arithmetic, therefore, is as follows:

Should have paid 10 X $950 = $9,500

Paid 10 X $850 = 8,500
Short rate $1,000

If an advertiser earns a better rate than the one to which he originally agreed,
per the space contract he signed, he gets a cash rebate. Failure to keep short
rates in mind when there is a reduction in an original schedule can lead to
unwelcome surprises.

Magazine Circulation

Primary and pass-along circulation. Total circulation is the actual num¬

ber of copies sold by a publication, as revealed by its Audit Bureau of
Circulation statement or other verified reports. Primary circulation represents
the number of households who paid for the magazine, on newsstand or by
subscription. Pass-along circulation is aptly termed to represent the readership
of a magazine by people who had asked, "When you’re through with that
magazine, could I have it?" Such circulation may be quite extensive. Pass-
along circulation also includes magazines read in the waiting rooms of physi¬
cians and dentists, and in beauty shops and barber shops.
The difference in desirability between primary readership and total
readership (which includes pass-along readership) may vary with the product.
For a hair-coloring advertisement, the fact that a woman sees it in a beauty
shop rather than at home may be an advantage; hence total readership may be
a useful criterion. Similarly, total readership might be meaningful for selling
any everyday household item of modest cost—canned foods, toothpaste. For
high-priced household appliances—a refrigerator or washing machine—the
advertiser might be interested in primary readership only.
 A:'"-': i

WPMIMagazine Publishers Association, inc. 229

Using
^ Magazine Center / 575 Lexington Avenue-, New York, N. Y. 10022 / 212 752-0055 Magazines

CIRCULATIONS OF ALL A.B.C. MAGAZINES

GENERAL AND FARM (EXCLUDING COMICS)
First Six Months Averages

No. of Combined Circulation Per Issue U.S. Adult Circulation

Magazines Population per 100
Year or Groups Single Copy Subscription Total (Add 000) Adults

1945 214 116,444,141 97,903 118.9

1946 225 66,371,816 60,903,481 127,275,297 104,966 121.3
1947 735 62,761,153 69,126,824 131,887,987 106,783 123.5
1948 238 63,711,508 77 ,374,676 141,068,184 108,085 130.5
1949 242 61,406,473 81,119,610 142,526,083 109,288 130.4

1950 249 63,610,284 83,069,191 146,679,475 110,471 132.8

1951 251 62,879,392 87,758,612 150,638,004 111,111 135.6
1952 250 69,617,481 89,224,072 158,841,553 111,889 142.0
1953 251 70,152,155 93,336,015 163,488,170 112,870 144.8
1954 259 64,173,653 98,766,250 162,939,903 114,112 142.8
1955 260 66,466,568 99,820,290 166,286,858 115,505 144.0
1956 275 71,280,594 111,664,048 182,944,642* 116,743 156.7
1957 281 71,673,064 109,292,364 '180,965,428 118,208 153.1
1958 278 62,980,836 118,016,642 180,997,478 119,854 151.0
1959 269 61,962,679 120,347,382 182,310,061 121,438 150.1

1960 269 61,043,613 126,870,013 187,913,626 123,890 151.7

1961 270 58,875,504 133,349,584 192,225,088 125,304 153.4
1962 269 58,840,661 137,954,198 196,794,859 127,692 154.1
1963 275 60,978,115 141,793,745 202,771,860 129,797 156.2
1964 282 62,7^3,889 142,650,050 205,373,939 132,005 155.6
1965 279 63,9 2,905 147,736,636 '211,659,541 133,909 158.1
1966 277 65,911,477 154,340,580 220,252,057 135,798 162.2
1967 283 67,562,389 161,580,510 229,142,899 137,877 166.2
1968 283 70,401,711 166,280,774 236,682,485 140,200 168.3
1969 298 69,039,195 167,985,665 237,024,860 142,600 166.2
1970 303 69,760,900 175,545,155 -245,306,055 145,200 168.9

* In 1956 Reader's Digest became an ABC magazine

SOURCE: Circulation - ABC records covering the first six months of each
year.
Population - Bureau of the Census, midyear estimates of population
aged 15 years and older, excluding members of the
armed forces overseas.

Courtesy, Magazine Publishers Association, Inc.

Magazine Merchandising Services

Every national advertiser seeks to have as many retailers as possible stock his
goods prior to the appearance of his advertisement, thus selling more goods
to the dealer by virtue of that advertisement. In fact, he uses the forthcoming
advertising as a sales incentive for the dealer to order the goods. The pro¬
cedure of telling a dealer about a forthcoming campaign designed to help him
sell the product is called merchandising the advertising.
 BEER HOUSEHOLD USAGE BY AMOUNT AND BRANDS
AVERAGE-ISSUE UOIENCE
TOTAL ADJl.TS

( ih thous/ni>s )

/ ■S'
Q / AO / **
/ £^
/
//
/ ^ / *
/
/
«9*
^ //* /^V / ^
/ ^
//
/f* // /
V // / ^ / ^ / $ /
/
^^ / $
TOTAL 130326 9320 1590 4175 641 22724 4349 1516 4814 680 4238 7306 14516
PCT. MARKET COVERAGE 100.0 7.2 1.2 3.2 .5 17.4 3.3 1.2 3.7 .5 3.3 5.6 11.1

01 USED ANY BEER IN HOME

IN PAST MONTH 64050 4834 952 260 5 353 11762 2770 757 3037 439 2516 4597 7910
PCT. COMPOSITION 49.1 51.9 59.9 62.-V 55.1 51.8 63.7 49.9 63.1 64.6 59.4 62.9 54.5
INDEX 100 106 122 127 112 105 130 102 129 132 121 128 111
PCT. MARKET COVERAGE 100.0 7.5 1.5 4. 1 .5 18.4 4.3 1.2 4.7 .7 3.9 7.2 12.3

NO. GLASSES USED PAST WK

02 9 GLASSES OR LESS 40516 3037 696 1342 266 7542 1804 427 2149 270 1432 3135 5225
PCT. COMPOSITION 31.1 32.6 43.8 32. 1 41.5 33.2 41.5 28.2 44.6 39.7 33.8 42.9 36.0
INDEX 100 105 141 10 3 133 107 133 91 143 128 109 138 116
PCT. MARKET COVERAGE 100.0 7.5 1.7 3.3 .7 18.6 4.5 1.1 5.3 .7 3.5 7.7 12.9

03 10 - 19 GLASSES 14660 1094 142 729 *35 2785 615 **175 595 *120 483 986 1695
PCT. COMPOSITION 11.2 11.7 8.9 17.3 5.5 12.3 14.1 11.5 12.4 17.6 11.4 13.5 11.7
INDEX 100 104 79 156 49 no 126 103 111 157 102 121 104
PCT. MARKET COVERAGE 100.0 7.5 1.0 5.0 .2 19.0 4.2 1.2 4.1 .6 3.3 6.7 11.6

04 20 OR MORE GLASSES 8875 703 114 536 **51 1435 350 *155 294 **49 601 476 990
PCT. COMPOSITION 6.8 7.5 7.2 12.8 6.0 6.3 8.0 10.2 6.1 7.2 14.2 6.5 6. 8
INDEX 100 110 106 188 118 93 118 150 90 106 209 96 ICO
PCT. MARKET COVERAGE 100.0 7.9 1.3 6.0 .6 16.2 3.9 1.7 3.3 .6 6.8 5.4 11.2

05 10 OR MORE GLASSES 23535 1797 256 1264 86 4220 966 • 329 889 169 1084 1462 2685
PCT. COMPOSITION 18.1 19.3 16.1 30.3 13.4 18.6 22.2 21.7 18.5 24.9 25.6 20.0 18.5
INDEX 100 107 89 167 74 103 123 120 102 138 141 no 102
PCT. MARKET COVERAGE 100.0 7.6 1.1 5.4 .4 17.9 4.1 1.4 3.8 .7 4.6 6.2 11.4

* m-y ( i<,ts IQ,-) ■,*»»! i #o* All A»'i ,'r SmOwm *o» C Omjhm nC IK'» 'Sport n th* p»op*'tr ol W S ond Aiiruoitj R«v*o<rN Inc ->r>d n d ii'.bu**<1 Icon to o g-ovo oi
0* •*•!».CAM WAf AMO AM»»SSA0O«
«»»• »00 TO -<>*l 'HAM TO'Al •ICasAI OT *»Ul»'*ll MSPOMVI
lO» C‘»CU»A"OM CHAMOIS HAWI KIN »NNO'JMCI0 It SO*»l PU*t'CA1iOM$
W. R. Simmons &. Associates Research, Inc.
»(>(( TQ K*Iim(mI WC"OMi O* »h| 'M!»OOuC'>ON TO TH'S W?Otl 1S72 A »«>< •
® l«0' cb , Inc will ovoil tll«l* ol lO'y n lo~ 0"d " c^ui’y nr>| unoviho"fd ui«

Courtesy, W. R. Simmons & Associates, Research

A Demographic Analysis of Magazine Circulation

Showing percentage of beer drinkers among readers of different magazines. Similar

reports are made up for other products, as an aid in selecting magazines.

Magazines offer a variety of services to help advertisers merchandise

their advertising. The service may consist of mailings prepared for the ad¬
vertiser to notify the dealer of the forthcoming advertising, along with counter
display cards for use by the stores, saying in substance, "As advertised in
—-Magazine.” The service may extend to elaborate department store
promotions: Esquire has a fashion promotion with 1,000 department stores
four times a year, featuring spring, fall, and back-to-campus styles, and Father’s
Day. The August issue of Mademoiselle is famous for its back-to-school
fashion predictions, and the magazine holds a fashion show in New York in
June, attended by store buyers and fashion coordinators. Reader’s Digest has
a computerized marketing service that helps readers find local outlets via a
single nationwide phone number. The success of many magazine campaigns

230
 EBONY’S Total-Selling
Plan: We don’t just
sell ad space, we
sell your product.
That’s why 80 out of the 100 largest The EBONY
merchandising men swing
WHAT PEOPLE SAY
ABOUT EBONY:
magazine advertisers use EBONY. a lot of weight with On our salesmen and
merchandising men—
“Central City"
Most publications just run your ads. Not retailers. ‘‘Your recent letter and
Ebony. We have a slew of sales specialists documentary report of
who see to it your ads get results. the sales/merchandising
First, there’s our team of crack Ebony activity performed by
salesmen who are actually trained marketing Ebony recently came to
men. Any one of them can sit down with you our attention for review.
and discuss any problem of marketing to Let me take this oppor¬
tunity to express our sin¬
that big 36.4 billion-a-year Black consumer
cere appreciation for this
market. They’ll be able to offer sound, objec¬
meaningful support, and
tive advice based on scientific research data, for the very detailed re¬
and supplemented by on-the-spot daily re¬ port. It leaves no doubt
ports of the Ebony merchandising staff. in our minds that this
These “Men-on-the-Move” form a sec¬ activity was of substan¬
ond set of specialists. They’re in 12 major tial value to the sale of
Campbell’s soups in the
12 important markets
covered.”
—A dvertising Manager,
Campbell Soup Company
earn $10,000 or more, and 58.4% own their ‘‘I appreciate the service
own homes. The median Ebony family in¬ of your merchandising-
come ($8,594) is nearly $1,200 more than the man who worked with
our sales representative.
median U.S. family income ($7,421).
Our readers believe in Ebony. They “Together they called
on 13 non-stops in North
trust in its journalistic integrity. For good
Philadelphia . . . They
reason. Our award-winning editorial staff is
picked up six new stops
all-professional: dedicated, competent and for us . .
involved. —Manager,
And the trust our readers have in our Continental Baking Co.
journalism spills over to a belief in the ads Norristown, Pa.
we run. “Through the efforts of
Read Ebony and see for yourself. Then your merchandising-
Our salesmen are supremely knowledgeable of the perhaps you'll agree with L. J. Evans, Presi¬ man, we succeeded in
Black consumer market, and can offer insights dent of the Grumman Corporation: placing our Adam Hats
that might have escaped the manufacturer himself. “I am opening my own subscription to into a sizeable number of
Ebony in order to get a broader view of all new outlets.”
markets, and have a great rapport with big- —Vice President,
America. From time to time, I have noticed
volume, downtown retailers, your whole¬ Adam Hats, Inc.
in The New York Times, the cogent text of
salers and distributors. On our editorial content—
your page advertisements. In the future those
They help restock shelves, arrange for "I hate been reading
advertisements will have more significance
product demonstrations, check competitors’ Ebony for five or six
brand facings, schedule that hard-to-get floor to me.” years.
space, and set up P.O.P. materials. They’ll For further information, please call: (New York) “There is no publication
even recruit and supervise additional per¬ William P. Grayson, Exec. V.P., 1270 Avenue of I know of which so dra¬
sonnel for door-to-door sampling, in-store the Americas, 586-2911. (Chicago) Lincoln Hud¬ matically and yet subtly
give-aways or couponing. son, V.P.,1820 South Michigan Avenue, 225-1000. records the changes that
are taking place in our
Retailers wan t to coopera te because they
nation’s social structure

EBONY_
know the pulling-power of ads in Ebony. as does Ebony. Congrat¬
They know that Ebony readers are the ulations.”
cream of the affluent Black consumer market. — William L. Guy,
The facts: 39.1% of Ebony households 4.2 million smart people do their shopping. Governor of North Dakota

Merchandising the Advertising

Ebony tells what it does to help its advertisers get retail support.
 232 has been helped by the ability of the manufacturer’s salesmen to present the
Medta advertising to a store and show the buyer the advantage of building his
merchandising efforts around it.
Merchandising services vary from magazine to magazine; their scope
depends also upon the size of the advertiser’s schedule.

Farm Magazines

We have a farm population of about ten million people who have their
own special magazines and other, periodicals. These may be classified as
general farm magazines, regional farm magazines, and vocational farm
magazines. Because a good number of the larger magazines have geographical
and demographic splits, these classifications overlap.

General farm magazines. The largest of these—Farm fournal, with

a circulation of about 3 million—reported that two thirds of its editorial
content is devoted to farm production, management, and news, and one third
to the needs of women and their families. It is published in a series of re¬
gional editions.

Regional farm magazines. These are publications specifically aimed

at the total problem of farmers in different regions of the country, including
problems relating to their chief crops, their general welfare, and govern¬
mental activity affecting that area. Here we have publications such as Ohio
Farmer, California Farmer, and Dakota Farmer.

Vocational farm magazines. Many farm publications are devoted

to certain crops, or forms of farming. They are really vocational papers re¬
lating to specific types of farming, and include such publications as The
Dairyman, American Fruit Grower, Poultry Press, and Better Beef Business.
There is an overlapping in these classifications, and we have the New England
Dairyman, Washington Cattleman, and Gulf Coast Cattleman.
Whatever the farmer’s interest may be, there are a number of publica¬
tions edited for him. Many farm homes get several publications.
Farm-publication advertising dropped between I960 and 1970, from
$66 million in I960 to $62 million in 1970, reflecting the drop in farm-
publication circulations, which in turn reflects the reduction in the number
of individual farm households. This field as a whole may be slowly shrink¬
ing, but nevertheless represents a basic part of our total population, and con¬
tinues to be a large market.

Trends in Magazines

The final issue of Life magazine, in December, 1972, marked the

demise, within a four-year span, of the last of the three one-time giants of the
mass weekly field: The Saturday Even/ng Post (1968), Look (1971), Life 233
Using
(1972). Magazines
For generations The Saturday Evening Post had been the preeminent
mass magazine and advertising medium, strong on fiction, as well as articles
and editorials of national interest. Life came out in 1936, introducing photo¬
graphic journalism; Look followed in Life's footsteps, first as a weekly, then
as a bi-weekly. Soon their circulation soared. The Saturday Evening Post was
hurt and began a long checkered course trying to create a new, viable edi¬
torial image to meet the times. There were changes in editors, changes in
policies, changes in management, changes in ownership, which began a new
round of changes to attract and hold a meaningful market for advertisers—
all to no avail.
During this time, despite their success, Life and Look were aware of
what was to become their nemesis—television. "After all,” the public seemed
to say, "why buy a magazine to see news pictures when we can see them live,
on TV, along with other programs?” TV attracted the mass audiences and
the large advertising budgets. The general weeklies were hurt.
Yet there were many advertisers who still looked with favor on maga¬
zines, spurring intense competition among them for the largest circulations in
their fields, hoping thereby to become the magazine of choice for advertisers.
But this "numbers game,” as this drive was called, proved prohibitively costly
to magazines whose income was declining. Instead of being impressed by the
big weeklies’ large figures, advertisers questioned the diluted quality of the
circulation.
Magazines tried a different gambit. They announced they would
concentrate their circulation in the major markets only, where advertisers did
most of their business, and prune their circulation elsewhere by redirecting cir
culation efforts. They dropped millions in their outlying circulation. They
reduced their page rates. They divided their circulation into regional and local
editions. This brought in much welcome business, but did not stay the overall
downward trend.
Meanwhile production costs of all magazines had been going up. This
most affected the big weeklies with their large page size, their costly color
plates, and their frequency of publication. Postal rates had gone up,stoo. Life
faced 1973 with the prospect of a 127 percent increase in mailing costs over
the next five years, if it continued. That was the coup de grace.
Increased postal rates and production costs will encourage large-size
magazines to reduce their page sizes, and to find ways to distribute their maga¬
zines other than by mail.
The death of all these weeklies was presaged by issues which became
thinner and thinner, both in advertising pages and in substance. Each publi¬
cation had lost the editorial distinction which would attract an identifiable
market for advertisers. Each had lost its reason for being . . . Thus ended
the age of the large-size weekly magazines addressed to the general public.
 How
to make
an investment
in carpeting
you won’t
regret.
Most carpets, even synthetics, look great
when they’re new, but a wool carpet
looks newer longer. Why?

As recent tests of wool vs. a comparable

acrylic showed, a wool carpet comes cleaner
by vacuuming, comes cleaner by shampooing.
Here’s proof.

Telling a Story in a Double Spread

The left side of this magazine ad was in black and white, the right side in full
color, giving the entire advertisement an impressive appearance. Magazines give an
advertiser an opportunity to tell a story that can be read fully at leisure.

234
The vacuum test:
Wool and acrylic carpets were laidf at a cafeteria entrance for 3 months and walked
on by 48,000 people. The samples were alternated every day and vacuumed every
day. On the last day of the test an electron microscope studied the carpets.

VACUUMtD

A
wool carpet
cleans better.
By test.
Ours.
And yours.
Result: Before vacuuming less dirt ad¬ vacuuming, wool had shed dirt more. Which carpet cleans better, wool or
hered to the wool fiber—with its scale¬ Conclusion: Wool's scaly fiber tends acrylic? Wool’s the one. The winner twice
like surface—than to the acrylic. After to reject dirt. Wool cleans better. over. Rejects dirt better. Cleans better.
And looks newer longer.
We’ve proved it in test situations and
you’ll prove it at home. Every time you
vacuum your wool carpet or shampoo it.

The shampoo test: And all the credit goes to the scaly
wool fiber. Hedged all around by hard
Wool and acrylic carpets were laid on the floor and shampooed after every 20,000
shingles very much like the shingles on
steps until 1 00,000 footsteps had been recorded—the equivalent of 2 to 3 years' wear
your roof, wool’s uncopyable structure
in an average home. Photographs show how wear changed the color of the carpets.
is the real reason a wool carpet does not
attract and hold dirt.
To sum up. Acrylic carpeting gets dirtier
faster than wool. And wool gets cleaner
easier by the two methods you use in
your own home.
Wool. It’s got life. And it looks if.

PURE WOOL PILE®

The Woolmark label on carpeting means it has

passed a battery of tests in the Wool Bureau
laboratories, for fiber content, pile weight per
square yard, mothproofing, backing construction,
look for the Woolmark label. It means you've got
a quality-tested carpet made of pure wool pile.

Result: After the first shampooing, the to five times more than the wool—and
wool had shed soil about 4 times better kept collecting soil faster than wool after
than the acrylic... its color was still bright. each subsequent shampooing.
As the heavy traffic on both carpets con¬
tinued, the acrylic carpet soiled from four
Conclusion: Wool carpet stays newer
looking than acrylic. Wool cleans better.
Wool. It’s got life.

23-5
 While these magazines were going through terminal pains, other
magazines were flourishing. They had one thing in common: Their editors had
a sharp editorial picture of whom they were trying to reach and a clear editorial
direction as to how to reach such readers. Reader’s Digest—the largest maga¬
zine published in terms of copies sold—stated its editorial goals this way:

Reader’s Digest is a general interest non-fiction reading magazine for

the entire family. It aims for simplicity, brevity, clarity, putting the
heart of the story within the reader’s easy grasp.

Other magazines with sharply defined editorial points of view will continue
to thrive—National Geographic, Playboy, Cosmopolitan, Good Housekeep¬
ing, Time, Sports Illustrated. The age of giants in the magazine field is not
over, except they will be specialized giants. Newer magazines which have a
sharply defined point of view, such as Psychology Today, Money, Ms., will
continue to appear.
A growing category in the magazine field will be "store books”—
volumes containing articles on specific subjects, largely compiled from the
magazines whose names they carry.
There will be greater use of magazines to carry insert and merchandis¬
ing units.
The General Foods magazine study (1971), showed the power of mag¬
azines to deliver a message that people remembered, in comparison to the mis-
identification of television commercials. This may mark a turning point in
restoring to magazines some of the advertising volume which has been going
to television.
The biggest change in the magazine picture may come from cable
television, which promises to have programs targeted to groups with special
interests, affecting even the magazines of special interests; and TV cassettes,
which may represent one more influence to turn people away from reading.

Criteria for Picking Magazines

Does the publication reach the type of reader to whom we are trying to sell
our product? How does the distribution of its circulation compare with that
of our product? How was the circulation obtained? What is the cost of reach¬
ing a thousand prospects, not merely the cost per thousand readers?
How do the readers regard the magazine? How thoroughly do they
read it? Will the advertisement be in acceptable company? How important
are merchandising aids, and what is available? If there are gaps in the cover¬
age the magazines supply, it might be time to look at other media.

Other Magazines

In addition to the foregoing magazines, we also have magazines used as

trade papers and for industrial audiences. Because of the specialized nature
of these publications, we treat them separately in a later chapter, "Business
Advertising.”
 Case Reports
on the Use of Magazines

Courtesy Magazine Advertising Bureau

 Read how you can enjoy the exhilarating
and adventurous world of flight. "Close to $6,000,000
Landings are even easier with low wing investment. Many pitots join clubs or rent
of business will be
f, Can Anyone Learn To Fly? aifpianss as you wouW a car.
Atmos! anyone can be taught to take off
design, as in the Piper Cherokee, because
an invisible pillow of air builds up under
generated.”
ans tend, but becoming a we!!-rounded
your wing to cushion the touchdown.
7. Whore Should i Learn To Fly?
pitot is a different thing, it takes the kind
of person who tikes a challenge and can
When you start using an airplane for its You’!! team best at a Piper Rife Center,
which offers programmed aviation training
"Pretesting and a split-
reai purpose-straight, swift transportation
apply NfflseSf. The 750,000 people in the with a complete 30-step system. Modern
U.S, who fty-and the thousands who am
-you are amazed ai the .miraculous but
training equipment is used and every in¬
run indicated that
simple-to-use electronic navigation aids
faking if up right now-are people who rel¬ structor is a government -r®ted professional.
ish the satisfaction of accomplishing some¬
that fell you exactly where you are. 'Seven Facts About
thing out of the ordinary. 5. What About All Those $5 For Your First Lesson
The first Introductory lesson at 8 Piper Learning To Fly’ had a
2. What Are The Physical instruments? Rite Center costs only $5. The Special
Sort them out and you find most are the
same as on a car or boat—a clock, a com¬
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You just have to be in genera! good health. at Piper Elite Centers, offers four lessons,
Common sense and mature judgment are
pass, a speedometer, and engine instru¬
ments, pius an aWmsfer. The additional
log book, and preliminary ground school learn-to-fly prospects.
the basic elements of a safe pitot. Only s instruction for only $88. Actually getting
instruments provided in most modem pan¬ your pilot’s license costs about the same
simple physical examination is mguired
Eyeglasses are no deterrent. There is no
els include, for example, a dial that shows as taking up golf or Skiing, And when you "This ad ran in ten
maximum age limit. {Sixteen is the minimum your rats of climb or descent, an artificial can fty, it's something the whoie family
age for solo.)
horizon that shows whether you’re tevsi, can enjoy with you. magazines during 1970,
and a gyroscopic compass the! remains
steady to flight . all there to simplify your Act Now and created
handling of the airplane, Use the coupon below to get a complete
To €£©i A Uoense?
The govemmeni requires a minimum of 35
8. Do You Have To Own An
Flight Information Kit which includes: approximately 15,000
Let’s Fly! 20-page illustrated booklet on
hours of flight time for a Private License.
Sines you are flying white learning, the re¬ Airplane To Enjoy Flying? teaming to fty f Piper Partnership book¬
let / Piper Pitot Magazine / Special money¬
responses. Piper Aircraft
quired hours are enjoyable and exciting. Not necessarily so. it’s very practical for
You team at your leisure, and pay on a you and two or three friends to share saving first flight lesson coupon. Visit your
Piper Flit® Center {listed in the Yellow
Corporation’s market
ownership in a new. over 130 mph Piper
■SKHee i.• ■ *
MHon-fo-lww basis.
Pages) for your first flight lesson See if
Cherokee. Sines flying can be enjoyed ail
yea? round, a share can be a very sound you're up to this exciting challenge
research department
to It To Loom? p.— projected that close to
You are introduced to the basic elements j Aircraft Corporation. Lock Haven. Pa 17745
of flying one at a time. First, the effect of
I Gentlemen $6,000,000 of dealer
the controls,.. ease back on the wheel to Please send me my free FLIGHT INFORMATION KIT
climb, ease forward to descend... make and Piper Flite Center
turns by fuming the wheel left or right to !
establish a bank After several hours of
practice you can handle the airplane in-
I business will be
Address
stmetivety—youl move confidently In the
three -dimensional maim of flight
Glly generated by this flight
Take-offs and landings are much simpli¬ State™ „ . Zip . .„Phone._. ... .—
fied with modem tricycle fending gear.
of magazine
advertisements.”
M. E. A. Wilkinson
Market Research
Director
Friedlich, Fearon &
Strohmeier, Inc.

Agency:
Friedlich, Fearon &
Strohmeier, Inc.

238
The Sales Idea: "This ad was the focal point of a total marketing effort behind
a Kraft Strawberry Preserves promotion, and was supported
by announcements on the Kraft Music Hall which ended with
a reference to the 70 coupon appearing in magazines. A copy
of the ad and a montage of the magazines were also included
in the TV commercials.

The Result: "Reprints of the ad served as a sales tool for the Kraft sales
force in arranging for features tying in with this promotion.
During the time this program was in effect, Kraft increased
their share of the Strawberry Preserves market by 65%.”

J. R. Johnson, Account Executive, Needham, Harper & Steers,

Inc.

Agency: Needham, Harper & Steers, Inc.

239
 something!

new main dish complete with beef}

There’s an exciting new kind of dinner inside

Imagine! A delicious mam dish lor vegetables, golden egg noodles and
two-complete with meat-ready in 15 its own savory sauce and zesty gar-
minutes, in just one step? Choose .msh. You've never served—he's never
Upton Beef Stroganoff, Chicken La tasted—snythrng like them Save 154 on any
Scala, Turkey Pnmavera or Chicken Tonight! Don't Just set the table,
Baronet. Each lavish with tender meat. set the mood . new Lipton Main Dish
"Successfully pioneered new market segment

The Sales Idea: When Lipton introduced the first complete-with-meat pack¬
aged dinners, they tell us they had to build a market from
scratch. They literally had to establish a whole new concept in
family eating. To do this, they acknowledge, they had to
reach those families most likely to try new and innovative
products—the better-educated, higher-income families.

The Result: 'We had to reach the taste-makers in communities across the
country, and we did. With the introduction of Main Dishes,
Lipton successfully pioneered an entirely new market segment.
Now there is an expanded line of Lipton Main Dishes—rang¬
ing from Beef Stroganoff to new Chicken Supreme with sherry
—in national distribution.”

Ted Labiner, Product Manager—Lipton Main Dishes

Agency: SSC and B, Inc. Advertising

240
 "We sold 50,000 Tuborg drinking horns on an advertising budget of
less than $200,000."

"By taking advantage of magazines’ ability to portray beautiful mer¬

chandise, we sold 50,000 Tuborg drinking horns on an advertising
budget of less than $200,000. It is doubtful whether any other medium
would have pulled as well, because magazines enabled us to combine
the message, a beautifully reproduced photograph and a response
mechanism (coupon) in one neat package called a one page, four-color
bleed insertion."

Mel Roth, Account Executive, Gilbert Advertising Agency, Inc.

Agency: Gilbert Advertising Agency, Inc.

241
 242 Review Questions
Media

1. What are the major advantages and 4. Explain the difference between pri¬
limitations of magazines for the na¬ mary and pass-along circulation.
tional advertiser? Under what conditions might an ad¬
vertiser be more interested in one or
2. Give a brief definition or explanation
the other?
of:
a. geographical editions
5. What are the major considerations
b. demographic editions
an advertiser should use for selecting
c. bleed pages
a consumer magazine?
d. second cover
e. junior unit 6. Describe the differences among gen¬
f. gatefold eral, regional, and vocational farm
g. primary circulation
magazines.
h. circulation guarantee
3. What is the standard unit of cost on 7. What are some of the chief trends in
which magazines are compared? magazines ?

Reading Suggestions

Barton, Roger, The Handbook of Adver¬ Mott, Frank Luther, A History of Ameri¬
tising Management. New York: can Magazines, three volumes. Cam¬
McGraw-Hill, 1970. bridge, Mass.: Harvard University
Press, 1930-1938.
Ford, James L. C., Magazines for Mil¬ Tebbel, John, "Time to Change Your
lions: The Story of Specialized Publi¬ Page Size," Saturday Review, Octo¬
cations. Carbondale, Ill.: Southern ber 9, 1971, pp. 68-70.
Illinois University Press, 1969-
Wood, James Playstead, Magazines in
Howard, Pamela, "Ms. and the Journal¬ the United States, 3rd edition. New
ism of Women’s Lib," Saturday Re¬ York: The Ronald Press Company,
view, January 8, 1972, pp. 43-45ff. 1971.
 /

11
Outdoor Advertising
Transit Advertising

OUTDOOR ADVERTISING
Much of America is on wheels today, going to and from work, shopping
and visiting, touring all parts of the country. In metropolitan areas, 83 percent
of all families own cars; in nonmetropolitan areas, 79 percent own cars. Fifty-
two percent of all families own one car; 25 percent own two cars, and 4 per¬
cent own three or more cars; 1 and as they drive they are greeted by outdoor
advertising.

Features and Advantages

Outdoor advertising provides the advertiser with the largest colorful display
of his trademark, product, and slogan. It offers the most spectacular use of
lights and animation and color to attract attention.
It is geographically flexible, available in any of 9,000 markets across
the country. An advertiser can reach his market nationally, regionally, or even
in local spots, and in those areas he can reach out for ethnic groups or demo¬
graphic groups. Outdoor advertising offers frequency of impression. Its cost
of appearing before a large audience is therefore low per thousand. It is
widely used in connection with other media.
When we speak here of outdoor advertising, we speak only of that
advertising placed by plant operators organized as an industry to place ad¬
vertising in markets all over the country. We do not speak of the multitude
of signs announcing the businesses along the roads—the bowling alleys and
car washes, motels, discount stores, eating places. The signs of organized
outdoor industry represent only 5 percent of all outdoor signs. In terms of
dollars, however, these members represent a $350-million industry.2

1 W. R. Simmons & Associates Research Study, 1970.

2 Report, This is Outdoor Advertising, Institute of Outdoor Advertising, 1971.

243
 244 Limitations and Challenges
Media

Outdoor signs are passed quickly; this is the greatest challenge to create a
design that can tell its story in rapid, crisp form. Not all messages are suited
to such compression. Outdoor advertising reaches a wide audience—a factor
that is an advantage for a product in widespread sale, but is a limitation if the
target of the market is a thin demographic group. Its use is also limited by
zoning laws, but even those living in neighborhoods where its use is not al¬
lowed will be greeted by outdoor signs where allowed on the roads leading
to and from their homes. Although the outdoor industry has done much to
limit the use of outdoor advertising to compatible environments, many people
object to outdoor advertising as a whole.
It takes time to print and post outdoor signs; their use must be
planned well ahead of appearance dates.
The industry is still in the process of getting adequate reach and
frequency reports.

Plant Operators

The basic business unit in the outdoor-advertising industry is the local plant
operator. He studies the traffic flow in his market and seeks suitable outdoor
sign locations along these routes. It may be an empty lot or the side or roof
of a building. As long as the location is exposed to traffic and the zoning law
permits the erection of a sign, the plant operator is interested in it. He leases
from the owner of the property the right to erect an outdoor sign structure
(or he may buy the site itself). He then "sells space to the individual ad¬
vertiser for a period ranging from one month to five years. He is responsible
for physically placing the advertisement on the sign as well as for its lighting
and maintenance.
In large markets, there may be several competitive plant operators,
each offering his own set of locations.

Forms of Outdoor Advertising

The chief categories of outdoor advertising used by national advertisers are:

1. Posters
2. Painted bulletins
3. Spectaculars

Briefly, posters represent the form of outdoor advertising that is the

least costly per unit; they are the "bread and butter ’ use of outdoor adver-
tising. Painted bulletins are costlier signs, and are usually placed in better lo¬ 245
Outdoor
cations only; they are the "cake” of outdoor advertising. Spectaculars are the Advertising,
largest, the costliest, and the most flamboyant of all forms of outdoor adver¬ Transit
Werbung
tising, and are for locations whose traffic warrants such expense; they are
the cake-with-icing-plus-ice-cream of outdoor advertising.

Posters

The term poster in the outdoor advertising world is used in a special

and restricted sense. It is the trade term for a structure or a blank panel of
standardized size and border that is affixed in the ground, to a wall, or on a
roof. The advertisement to appear on the poster is printed at a lithography
plant on large sheets of paper, which are then mounted by hand on the face
of the panel.

Poster sizes. Poster sizes are referred to in terms of sheets. The term
originated in the days when it took 24 of the largest sheets that the presses
could hold to cover a sign 12 by 25 feet. The presses have changed, but the
designation has stuck. Today, all posters are still mounted on a board of that
size, but the actual sizes of the posters themselves are as follows:

1. 24-sheet poster (8'8" X 19'6"). The rest of the board area is a

margin of blank paper.
2. 30-sheet poster (97" X 217"). The rest of the board is a margin
of blank paper. 25% more copy than the 24-sheet.
3. Bleed poster, which extends the artwork right to the frame. It
averages 40% larger than the 24-sheet poster.

The 30-sheet poster is the most widely used by advertisers today.

There is also a 3-sheet poster size, 90 inches high by 46 inches wide,
mounted on panels on walls adjacent to a store in which the product is sold.
Approximately 230,000 poster panels span the country. In markets of
100,000 and over, 64 percent of panels are illuminated at night, to take ad¬
vantage of night traffic, including the many who shop then. The percentage
drops to 3 percent in markets of 5,000 to 10,000.

Poster showings. Posters are not sold individually, but as a pre¬

selected assortment called a showing. The number of boards in a showing is
referred to on a comparative scale, in terms of showings. A #100 showing
represents a selection of panels the number and distribution of which is de¬
signed to do an excellent job of covering that market. In each instance, the
plant owner specifies the number of boards included in his showings, and the
cost per showing. The number of a showing has nothing to do with the num¬
ber of posters included, nor are showings to be read as 100 percent or 50
 ——————“ -

POSTER Kimm ■ ^

Courtesy, Foster and Kleiser

Standard Poster

The poster is a standardized structure, 12' high and 25' long,

on which outdoor advertisements are pasted. The poster is
24 SHEET the most widespread form of outdoor advertising.

On the 12' by 25' poster panel, advertisements of three sizes

can be mounted. The differences in their sizes depend upon
how much white space is left in the margins. The sizes are
referred to in terms of "sheets.”

Courtesy, Foster and Kleiser

 _ Courtesy, Criterion Advertising, Inc
Three-sheet Poster

This size poster is used extensively outside stores in

which the product is being sold; also used at train
stations.

percent. A #50 showing is about half a #100 showing. In larger markets,

there are also #75 and #25 showings. An advertiser can also buy a
#150 or a #200 showing, usually for a short intensive drive. The most fre¬
quently used showing is the #50 showing.
Each plant operator decides how many boards are in his showings, and
how they are distributed in his market—for example, approach roads, busi¬
ness districts, neighborhood shopping centers. All boards in a showing will
have the same distribution values in a market as other boards of the same size
showing. The number of boards in a #100 showing varies from market to
market, depending on the population, the area, and the traffic pattern.*
According to studies on the subject by Ted Bates & Company, the
average #100 showing provides a four-week reach of almost 90 percent of all
men in a given market, with exposure of 31 during that period.

Painted Bulletins

For the more important traffic sites, a larger and more elaborate form
of outdoor sign, called a painted bulletin, is used. These structures have a
prefabricated steel facing with a standardized border trim. The advertisement
is painted on the face of the bulletin. In some markets, lithographed sheets
are being used. The proportions of painted bulletins are standard, even
though actual sizes may vary. The most common size for bulletins is 14 by
48 feet.

* In 1973, the GRP began replacing the showing. One outdoor GRP represents the
number of boards that in one day provides exposure equivalent to 100% of the market population.

247
 OUTDOOR ADVERTISING UNITS

30 SHEET SIZE 97'* 21 '«*

47'<

48'

Courtesy, Whitmier and Ferris

 Painted bulletins are illuminated for the night traffic. They often 249
Outdoor
have extending from them clocks, thermometers, or an electric time and Advertising,
temperature unit known as a jump clock. They may also have enlarged cutouts, Transit
Werbung
such as a package or trademark, displayed in brilliant lights, extending beyond
the board itself, as well as three-dimensional structures made of Styrofoam.
Of the combined totals of poster panels and painted bulletins now
on display, painted bulletins constitute 38 percent, posters, 62.3

3 Institute of Outdoor Advertising, 1971.

mioms
mm

jJJEJELJp m '
, |r. TT j |
fib . 1 ' ■J|f|| y. 1 *
[ 2J *8 J||jj P; m
I ^

Courtesy, Foster and Kleiser

Painted Bulletin

This is a special construction placed in areas of heavy traffic, illuminated at night.

The advertisements are painted on the face of the panel.

Painted Bulletin
with Special Construction

Note the
simplicity of the
message.

when you’re
having more
than one

Courtesy, Foster
and Kleiser
 A painted poster with a specially con¬
structed louvre, which turns to show
another illustration.

The other side of the louvre—an effec¬

tive way of getting attention and telling
a two-faced story quickly.

Courtesy, Lamar Dean

Buying painted bulletins. Painted bulletins are bought individually,

in contrast to posters, which are bought by showings. Contracts run for a year
or more, especially with extra construction. Copy changes usually take place
three times a year. The advertiser, or his representative, will visit a territory,
personally inspecting each location offered by the local plant operator. He will
judge its circulation, the distance from which it is visible, the amount of
traffic, competing signs and distractions, and any special features affecting its
visibility. The price quoted for the individual painted bulletin may be subject
to negotiation. The advertiser supplies the design and art work to the plant
operator, who is responsible for reproducing it and maintaining the sign in
good condition.

Rotary plans. Instead of having one painted bulletin in the same

location for a year, an advertiser in many markets can buy a rotary plan,
whereby the whole face of the bulletin bearing his advertisement is moved
every 30, 60, or 90 days to a different preselected location—thus getting the
message before different audiences. It may even be moved to a different
market. The advertiser selects in advance those locations he considers best for
his purpose. The board itself is painted, or the advertisement mounted, in
the shop.
250
 There has been a great increase lately in the use of rotary showings. 251
° .... Outdoor
It’s the "in” thing in outdoor advertising buying. Advertising,
Transit
Werbung
Spectaculars

In an industry with its own special jargon, it is refreshing to come

upon a word that literally means what it says—the outdoor spectacular sign.
Spectaculars are the most conspicuous of all outdoor advertisements, placed
and designed to attract the greatest number of passersby. They are built of
steel beams, sheet metal/ and plastics, and utilize bright lights, flashing lights,
animation movies, waterfalls in the background, rising steam, and smoke
designs representing the height of the technical ingenuity of outdoor-sign
construction. Great nighttime brilliance, along with daytime value, is ob¬
tained for many signs through the use of the newest techniques in painting
and lighting.
Spectaculars are the costliest of outdoor signs, erected at the heaviest
traffic spots. The price ranges from $25,000 to a third of a million dollars
per year. They are individually designed, and the cost of space and construc¬
tion is individually negotiated. They represent a large capital investment in
the structure, which is amortized over a three- to five-year space contract.
Changes are costly because they may entail reconstruction of steel work and
neon lighting.
An advertiser may often use all three forms of outdoor advertising in
a market: a spectacular at a particularly advantageous location from the view¬
point of heavy traffic, and some painted bulletins on the main arteries, supple¬
mented by 24-sheet posters in the neighborhood areas during peak months.

OUTDOOR Spectacular Courtesy, Douglas Leigh, Inc.

This sign uses brilliant animated illumination to catch the eyes of passers-by.
 252 Shopping-center Panels
Media

In about 1,000 shopping centers in 230 markets, an advertiser can get

display panels suspended from the lightposts in the parking area. Average na¬
tional showing includes 6,000 displays in 1,000 centers.

Outdoor Advertising Circulation

Circulation in outdoor advertising is spoken of as "effective circulation,"

which is interpreted to mean the number of people who may pass a given
sign and have a reasonable opportunity of seeing it. This number is measured
as half the pedestrians, half the automobiles, and one fourth of the surface-
transportation passengers who pass the sign. (As the reader will observe, the
term circulation means different things in different media.) The chief value of
such figures is to provide a comparative basis of the worth of different lo¬
cations.
The chief source of information of such data has been the Traffic
Audit Bureau, composed of members of the industry. In 1971 it restructured
its operation to provide the modern type of information that advertisers seek.
Their program now is:

—To publish circulation data that can be used for planning of outdoor
advertising campaigns, market by market.
—To reflect circulation that can be delivered.
—To obtain data that over the years can be used for trend information.
—To detail the audited information in its simplest form, so that the
information may apply to what the advertiser or agency desires to
buy and what the plant operator offers to sell.
—To report information only for markets and companies audited. In
markets where some companies do not audit, lack of audit will
be reported.
—To distribute the Plant Operator’s Statement of effective circulations
in a manner similar to that of ABC and BPA statements—to sup¬
porting advertisers and agencies.

Buying Outdoor Advertising

In buying a poster showing, the outdoor space buyer will ride through the
area with a plant operator or his representative, to examine the sites included
in a showing. He may suggest one or two alternative choices, but on the
whole he buys the preplanned package of locations designated by the plant
owner as a showing.
 Poster Rate List
OUTDOOR RATES AND MARKETS Indiana
COVERAGE d CROSS Note the
EFF. “ POSTERS COST 1 REF.
MAKRtl-LAJUINI T POP. difference in the
PLANT DATE
# slON
f ILL. ILL.
PER
MONTH
s
c
NO.
number of posters
0255.0 EVANSVILLE VANDERBURGH 145.0 01-01-0 100 10 1* 1680.00 C 0690 in a showing.
75 7 11 1305,00 C)
(090)
50 5 7 930.00 3 Compare the
25 2 4 495.00 3
showings in
248.6 01-01-0 100 20 20 2570.00 3
0255.0 EVANSVILLE (HEATER METRO MKT IND”K 10 1490.00 3 Evansville and
(090)POSEY VANDERBURGH WARRICK 50 12
IND HENDERSON KY Fort Wayne.
7.6 05-01-0 100 8 336.00 3
7945.2 EVANSVILLE SUBURBAN'MKT 50 4 168.00 3
(090) GIBSON
POSEY
WARRICK
grant 3.1 01-01-1 100 2 90.00 3 1355
9142.4 fairmount
50 1 45.00 3
(018)
SULLIVAN 1*0 01-01-0 100 1 36.00
8 2^0* 2 farmersburg
(104)
RANDOLPH 1.1 01-01-9 100 1 42.00 D 2425
4575,0 farmland
(041)
DUBOIS 1.4 01-01-9 100 1 40.00
4715.0 FERDINAND
(090)
MADISON .1 oi-oi-i 100 1 45.00 D 0040
9162.Q fishersburg
(018)
1.7 01-01-1 100 1 48.00
5615.2 FLORA CARROLL
(018)
GIBSON 2*0 oi-ci-o 100 1 42.00 D
7965.2 FORT BRANCH
(090)
HANCOCK 2.2 Ol-Ol-l 100 1 45.00 D 0040
9162.0 fortville
(016)
249.1 01-01-0 100 7 15 1430.00 0747
0965.0 SORT WAYNE MKT ALLEN
75 5 12 1105.00
(089) 4 10 910.00
50

267.7 01-01-0 100 13 15 1760.00

0965.0 FORT WAYNE METRO *KT ALLEN 12 1335.00
75 9
(089) 50 7 10 1075.00

WAYNE .8 10-01-9 100 1 45.00 D

6265.0 FOUNTAIN CITY
(041)
BENTON 2.5 01-01-0 100 2 90.00 D
9147.0 fowler 45.00 D
50 1
(018)
PULASKI l.C 01-01-0 100 1 45.00 D
9147.0 FRANCESVlLLE
(088)
oo

2 D
oo
oo
oo

30." 01-01-1 100 4

• •

9162.2 FRANKFORT MKT CLINTON

D
|4J

5C 3 1
(018)
MADISON l.<» 01-01-1 IOC 1 45.00 D 0040
9162. C frankton
(018)
2• 01 — 01 — c IOC 3 126.00 D
3825.2 french lick-west BADEN 5C 2 84.00 D
(038) ORANGE

FULTON . 01-01-] IOC 1 48.00

5685.2 FULTON
(088) t

PORTER • <4 01-01-C IOC 47.00 D 1410

9168. FURNESSVILLE
(003)
CASS 1. 1 01-01-C) IOC3 41.00
7420. 3 GALVESTON
(018)
DE KALB 4. 7 01-01-13 1OC3 l 96.00
0965.13 GARRETT
53 l 48.00 From The Buyers’
(089)
7167. 2 GARY METRO MKT LAKE 223. 7 01-01- 1 10 3 1(3 3 1236.60 D 0347 Guide to Outdoor
75 3 6 961,80 D
(003)
50 5 4 618.30 D Advertising,
135.00 D 1355
Institute of Outdoor
7. 7 01-01- 0 10 0 3
9162* 4 GAS CITY-J0NESB0R0 GRANT
50 2 90.00 D Advertising
(018)
 254 Buying painted bulletins is a different matter. Here each sign is
Media
handpicked and bought separately. The plant owner will supply a traffic-flow
map showing the location of his signs in relation to the main arteries and
traffic routes of his market.
The outdoor space buyer will then ride out and personally inspect all
the promising available locations before selecting any. He does the same for
spectaculars.
He may find room for negotiation on some bulletins and spectaculars.
The plant owner will submit a separate estimate of the cost of spe¬
cial construction for bulletins and spectaculars. This cost may be included in
the monthly bill and amortized over the contract period (a three- to five-year
period).

Inspecting the outdoor sign. When the outdoor signs are up, the
agency is notified. A man from the outdoor department will inspect the signs
(called riding a showing) to make sure that all boards are in proper working
order. The boards will then again be inspected regularly to make sure the
traffic flow has not changed, that no obstruction—such as the foliage of a tree
—or new construction, impedes the view of the sign, and, in the case of posters,
to make sure that the posters are not peeling, and that all flashing and lighting
arrangements are working properly.4
Just what may be involved in an inspection of outdoor signs was re¬
vealed by Richard Briggs, who handled the outdoor-advertising account of
Old Charter Bourbon at the McCann-Erickson agency :

We insisted on a number of quality controls. We reviewed materials

and construction, elevation of structure, spacing and individuality,
lumen output, pictorial reproduction, size of display as related to im¬
pact, copy flexibility as related to repaints, space costs as related to
circulation, and audience demographics of traffic passing the location.5

Criteria for Selecting Outdoor Signs

Among yardsticks besides circulation to take into consideration in picking a

location are:

—Length of unobstructed approach—the distance from which the

location first becomes fully visible to people driving.

4 Many agencies work through the National Outdoor Advertising Bureau (NOAB),
a cooperative outdoor-advertising facility, which handles the mechanics of ordering and in¬
specting the boards of its members.
5 Report of Richard L. Briggs, Media Decisions, August 1971, p. 62.
 IS} fcw*

A Traffic-Flow Map
 —Type of traffic—the slower the better. Is it all auto, or is it also 257
Outdoor
pedestrian, bus, or a combination of these? Is the traffic toward Advertising,
the location or away from it, as on a one-way street? Transit
Advertising
—Characteristics of placement—angled, parallel to line of traffic, or
head-on. Angled is easily seen as cars approach in one direction;
parallel can be viewed by traffic traveling in both directions, but
better by people sitting in the car at the near side; head-on is
viewed by traffic approaching a location on the outside of a
curve or where traffic makes a sharp turn.
—Immediate surroundings—Is it close to a shopping center? What
competition from surrounding signs? Is it by a traffic light? Red
lights give people more chance to read the sign.
—Size and physical attractiveness of the bulletin.
—Price—an area of comparative values and negotiation.

Adapting Copy for Outdoor Advertising

The outdoor advertising of a national advertiser is usually a part of a cam¬

paign also appearing in other media. The problem is to create an effective
tie-in with the total campaign theme. It is recommended that outdoor adver¬
tising contain not more than three elements:

1. Clear product identification. The trademark can be alone or on a

package. Can it be immediately recognized? How clear is it at a
distance?
2. Large illustration size. Size gets attention. The picture should tell
the story. Colors should be bold, no pastel effects. Figures should
be distinct and silhouetted. Backgrounds usually interfere with il¬
lustrations.
3. Short copy. The copy, if any, should be concise, the words short,
the message unambiguous. Read the copy out loud. If it takes more
than eight seconds, it’s too long. The typography should be large.
Best to use heavy sans-serif type, spaced liberally.

The great art of outdoor advertising design is simplification.

The Highway Beautification Act of 1965

Outdoor advertising has been severely criticized by those who feel that natural
scenery was made to be enjoyed by the public and not to act as a backdrop
for advertising. The organized outdoor plant owners had long been with-
 258 drawing such signs, and concentrating their placements in the business and
Media
shopping centers, where permitted by zoning.
In 1965, Congress passed a Highway Beautification Act, in connec¬
tion with the many highways being built with federal assistance. This law
banned the erection of outdoor signs within 650 feet of the right-of-way of a
highway built with such funds, but permitted such signs within that area if
it is locally zoned for business and industrial use. If this law is not enforced
by the state governments, their federal highway subsidies are withheld. The
result has been not only a reduction in the number of signs which had al¬
ready been built along Federally financed highways—the big interstate roads
—but the prevention of the erection of these signs on interstate roads built
since the law went into effect.

Trends in Outdoor Advertising

In I960, $203 million was invested in outdoor advertising; in 1970, the

figure was $234 million, an increase of 15 percent in dollar volume. The na¬
tional advertising increased 12 percent; the local, 21 percent.6 During this
time, there was a decrease in the number of signs, and a general withdrawing
to the shopping areas, which were zoned for outdoor signs and concentrated
where the markets were. There is no evidence, however, to suggest that the
public criticism of outdoor advertising is decreasing.
Meanwhile, the quality of the poster structures has improved. The
use of painted board has increased, as have rotary showings. The big effort
of the industry is to gather more definitive data about circulation, reach and
frequency, and impact, and this effort promises to continue.

6 See p. 121.
TRANSIT ADVERTISING
The term transit advertising embraces all the advertising carried by buses,
subways, and streetcars, as well as in their stations, on their platforms, and in
their terminals. It includes advertising in commuter trains and stations, and on
their platforms. The signs and displays at air terminals, too, are a part of transit
advertising.
Transit advertising is a rapidly growing medium, having risen from
$22 million in I960 to $35 million in 1969—a gain of over 60 percent.7
Of all transit advertising, 42 percent is national, 58 percent local.
Among the long-time national users of transit advertising are Procter &
Gamble (47 years), Best Foods (45 years), and American Home Products
(25 years). Chiefly responsible for the growth of the medium in recent years
is the extensive use of the outsides of buses, the development of better
displays, and the standardization of industry practices (only in recent
years has the Standard Rate & Data Service included transit advertising in its
reports). Also helpful in the use of the medium have been research findings
about the effectiveness of transit advertising in the total advertising plans.
Bus advertising represents two separate media—that on the inside
(also called car card advertising or interior advertising), and that on the out¬
side (called exterior advertising). Each offers its own dimensions and values
to the advertiser. Interior transit advertising represents 22 percent of the total
transit dollar volume; exterior transit advertising represents 78 percent.

Interior Transit Advertising

Features and Advantages

More than 40 million people per month ride in public transit vehicles
in the United States. In markets of over one million, 46 percent of all white-
collar workers and 50 percent of all blue-collar workers, 31 percent of all
adults with $10,000 or more annual income, and 24 percent of all adults in
households of two or more automobiles travel in public vehicles. This is
aside from the teenagers and other children who ride to and from school
regularly. The average length of the ride is 22 minutes, and the average
rider takes 24 rides a month.8

7 The Transit Advertising Measurement Bureau.

8 U.S. Transit Volume, 1968. Transit Advertising Measurement Bureau, Inc.

259
 260 This regular mass movement of people in public transit vehicles pro¬
Media
vides the following advertising opportunities:

-It is a flexible medium geographically, available in over 380 major

markets. It is flexible timewise: It can be bought just on a
monthly contract in the winter for cough preparations, and it
can be peaked in the summer for soft drinks.
-It is a sharply definable local medium. In some markets, the adver¬
tiser has a choice of routes, from which he can choose the one
that passes through the neighborhoods of the ethnic or other
demographic groups he is anxious to reach, or the shopping
center.
-Because of the length of the ride, the passenger has a chance to
read the ads within viewing distance. Because of the number of
times he goes back and forth on the same route, the different ads
get a double chance of being seen, and also the advantage of
frequency.
-Bus advertising can carry the theme being run in other media at
the same time, magnifying the total frequency (this applies to
exterior advertising too) of impression of the entire advertising
effort.
-It allows for many special constructions, lighting, and color effects.
-Transportation advertising literally rides on the already-existing
facilities that provide the audience, without additional circulation
or programming costs—one of the chief factors of its compara¬
tively low cost.

MONTHLY AUDIENCE COMPOSITION BY USE OF TRANSIT

AVERAGE DAY/WEEK
(“A” MARKETS)

TOTAL MEN WOMEN

AVERAGE MONTH: 19,942,000 RIO AVERAGE MONTH: 8,444,000 RIDERS AVERAGE MONTH: 11,498,000 RIDERS

RIDE AVERAGE WEEK

RIDE AVERAGE WEEK 6,085,000 MEN RIDE AVERAGE WEEK

8,138,000 WOMEN
14,223,000
72.1%
71.3%
OF MONTHLY TOTAL
OF MONTHLY TOTAL

OF MONTHLY TOTAL

RIDE AVERAGE DAY RIDE AVERAGE DAY

RIDE AVERAGE DAY
6,837,000 3,477,000 MEN 3,360,000 WOMEN
34.3%
OF MONTHLY TOTAL
41.2%
OF MONTHLY TOTAL
29.2%
OF MONTHLY TOTAL Courtesy, The
Transit Advertising
Chart to be read: In the average week, 14,223,000 "A”-market adults ride Transit. This is 71.3% of the monthly “A” markets Transit audience. In the average day,
6,837,000 “A"-market adults ride Transit, 34.3% of the monthly total. (Data presented are the results of an electronic data processing procedure where percentages and
projections derived from the base have been rounded to the nearest tenth for percentages and nearest thousand for projections.)
Association, Inc.
 On the whole, interior transit advertising provides pleasant com¬ 261
Outdoor
panionship for the traveler, with time for him to study carefully those cards Advertising,
within his view, and a low-cost opportunity to the advertiser to get his message Transit
Werbung
before a wide audience.

Limitations and Challenges

—Transit advertising does not reach that large segment of the popu¬
lation that does not travel on public transportation. This number
varies with the community.
—It reaches a wide nonselective audience, which may meet the needs
of some advertisers, but not of those seeking a sharply defined
market.
—Most travel is in the peak morning and evening rush hours. The
crowded buses at those peak hours limit the opportunity and ease
of reading.

Circulation

The first questions an advertiser asks of a medium are, "How many

people can I reach with my message? How much will that cost me per
thousand?” As the first step toward answering these questions about interior
transit advertising, the industry has established a rigid system of measuring
inside audience by a fare-box count, defined as "one person riding a display¬
carrying vehicle for one trip.” The Standard Rate & Data Service, which
publishes all transit-advertising information in a special edition, reports
whether or not it has received certified or notarized figures from the different
transit operations. All references to circulation are in terms of "estimated
monthly rides.” This does not mean that all riders see every card, or that they
represent different people each trip. Special research facilities are available in
some markets to judge how many riders saw and remembered specific ad¬
vertisements.

Standard Sizes

The standard size of interior transit advertising is for the overhead

racks, 11 by 28 inches, and most cards are sold in that size. (Other size units
available are 11 by 42 and 11 by 56 inches.) A large unit, 21 by 22 inches, is
available near the doors of many vehicles, at a premium.

Special Effects

Transit advertising offers great flexibility in the use of colors, printing

processes, light, and materials, and invites ingenuity of design and construe-
262 tion. In some markets, signs are offered on backlighted transparencies. The
Reynolds Metals Company was able to print its signs in aluminum, while
Gordon’s Gin had its bottle realistically reproduced on the card in three-
dimensional plastics.
A special card called a Take One has a pad of direct-response return
cards attached. The rider is invited to take one and mail it in, either for
further information, or else for an application blank to join something—like
the Diners’ Club. These special effects entail an extra charge.
In some markets, an advertiser can rent a bus converted into a
traveling showroom, to which he can invite the store buyers in a given area;
this is called a merchandising bus.

Buying Interior Transit Space

The unit of sale of interior transit advertising is the showing, also

referred to as a run or service. In interior transit, the word showing has a
special meaning. A 100 showing usually means one card in each vehicle; a 50
(or half) showing means one card in every other vehicle; a 25 (or quarter)
showing means one card in every fourth vehicle. Every operator specifies the
number of showings in his line. The advertiser must supply the cards two
weeks in advance. The cost of the cards is an important factor to consider in
planning a transit budget. Contracts are made by the month, with discounts
for three-, six-, and twelve-month periods. Cards can be changed monthly,
without cost. Many advertisers run off extra cards for distribution as dealer
displays.

A Standard Car Card

 A Back-lighted Car Card

A Side-Position Car
Card

For juicy meat

with no oven clean-up-

0rown*ln-Bag

An Over-the-door Car Card

 MECHANICAL SPECIFICATIONS
Columbus—Continued King Size and Queen Size posters must be pro¬
8. MECHANICAL REQUIREMENTS duced on 70 or 80 lb. waterproof opaque poster paper.
Outside A margin of 1-1/2" should be allowed on all sides. Extract of a page
Poster Requirements: For long term showings of same copy, messages
-Showing- may be silk screened directly on masonite for dura¬
bility. Traveling Displays, Front-end and Rear-end
of rates for
Size: 100 75 50 25
Queen . 120 90 60 35 posters must be produced on 10-ply waterproof stock,
MECHANICAL SPECIFICATIONS with grain running horizontally, and varnished after outside bus
Queen Size posters should be produced on 70 or 80 printing.
lb. waterproof opaque poster paper or on 14 or 16 Inside posters from
ply waterproof cardboard. Margin of 1-1/2" on all Card Requirements:
sides,
inside
Full service 50; half service 25.
Shipping Information
Transport
Card Requirements: Shipping dates: Ship cards prepaid to arrive at least
Full service 280: half service 140: quarter service 10 days in advance of showing. Section of the
75. Ship to: Marvin F. Davis, Rolco Advertising Co.,
MECHANICAL SPECIFICATIONS 2027 Leo St., Dayton, Ohio 45404. Standard Rate &
Inside cards to be screened on 4- or 5-ply stock, grain 9. MONTHLY ESTIMATED RIDES
horizontal. SRDS—3/31/71 Data Service. All
Shipping Information Monthly rides (12 month average)-- 1,370,902 ^
Shipping dates: To arrive prepaid at least 10 days
in advance of showing date. rate cards are
Ship to: Buckeye Transit Advertising, c/o The
Columbus Transit Co., Cleveland Ave., Equipment
Dept.. 832 Cleveland Ave., Columbus. Ohio 43201.
TOLEDO given in full, in
9. MONTHLY ESTIMATED RIDES
SRDS—3/31/71
Monthly rides (12 month average)...1,633,439
ms
Toledo Area Regional Transit Authority.
standardized
numerical
Operated by The Batchelder Co., 502 E. War Memo¬
DAYTON rial Dr., Peoria, Ill. 61614. Phone 309-688-8508.
1. PERSONNEL
sequence for each
The City Transit Co., St. John Transportation, Miami
Regional Manager—Bruce Holland.
Valley Bos Lines, D & T Bus Lines. medium.
Operated by Rolco Advertising Co., Dayton Municipal 2. REPRESENTATIVES
Airport. Rm. 212. Terminal Bldg., Vandalia, Ohio Mutual Transit Sales.
45377. Phone 513-898-1339. New York. N. Y. 10017—230 Park Ave. Phone 212-
1. PERSONNEL 682-9100. Telex 1-2321.
President—Gaylord A. Gourley. Chicago, Ill. 60611—410 N. Michigan Ave. Phono
Executive Vice-Pres.—William S. O’Neill. 312-467-5200. Telex 253-852.
2. REPRESENTATIVES Detroit, Mich. 48202—500 Fisher Bldg. Phone 313-
Mutual Transit Sales. 874-5100. Telex 235-425.
New York, N. Y. 10017—230 Park Ave. Phone 212* Philadelphia, Pa. 19103—19th & Walnut Sts. Phone
682-9100 Telex 1-2321. 215-561-5950. Telex 84-52-95.
Chicago, Ill. 60611—410 N. Michigan Ave. Phone Los Angeles 90057—2233 Beverly Blvd. Phone 213-
312-467-5200. Telex 253-852. 384-3161. Telex 674-919.
Detroit. Mich. 48202—500 Fisher Bldg. Phone 313- Branch Offices .
R74-'tinn TpIpy 93c>-49ci Covington, Ky. 41015—Rt. No. 5, Eox 415. Phone Courtesy, S.R.D.S.
Philadelphia, Pa. 19103—19th & Walnut Sts. Phone 606-356-7560.
215-561-5930. Telex 84-52-95. Toledo, Ohio 43610—1127 W. Central Ave. Phone
Los Angeles 90057—2233 Beverly Blvd. Phone 213- 419-243-1241.
384-3161. Telex 674-919. 3. AREAS SERVED
3. AREAS SERVED Toledo, Rossford. Perrysburg, Maumee, Ottawa Hills.
Dayton, Kettering, Oakwood, Shiloh, Trotwood, Number of vehicles operating: 150.
Brookville, Englewood, Union, Page Manor, Knoll-
wood. Xenia. West Milton. Vandalia, Ohio. 4. AGENCY AND CASH DISCOUNT
Number of vehicles operating: 193. Agencies 15%; cash discount 0%. Terms: Bills Issued
4. AGENCY AND CASH DISCOUNT monthly.
Agencies 15%: cash discount 0%. Terms: Payable at 5. ADVERTISING RATES
the end of each month during the term aforesaid. Eff 7/1/71.
5. ADVERTISING RATES Outside Rates
Eff 4/15/70. Showing values:
Outside Rates 100 showing—60 units.
Showing values: 50 showing—30 units.
100 showing—30 units. 25 showing—15 units.
75 showing—23 units.
50 showing—15 units. KING SIZE POSTERS
KING SIZE POSTERS (1 eft ar.d right) 30" x 144":
30" x 144": Showing: 1 mo. 3 mos. 6 mos. 12 mos.
Showing: 1 mo. 3 m»s. 6 mos. 12 mos. 100 . 2,400.00 2,280.00 2,160.00 1,920.00
100 . 1,200.00 1,1411.00 1,080.00 960.00 50 . 1,380.00 1,3 1.00 1,242.00 1,104.00
75 . 920.00 874.00 828.00 736.00 25 . 750.00 712.50 675.00 600.00
50 . 600.00 570.00 540.00 480.00 Unit rate.50.00 48.00 45.00 40.00
Unit rate. 40.00 38.00 36.00 32.00 QUEEN SIZE POSTERS
HEADLIGHTS (front and rear) 30" x 96":
11" x 42": Showing: 1 mo. 3 mos. 6 mos. 12 mos.
Showing: 1 mo. 3 mos. 6 mos. 12 mos. 100 . 1,680.00 1,596.00 1,512.00 1,344.00
100 . .. 214.50 203.70 193.20 171.60 50 . 945.00 897.75 850.50 756.00
75 . .. 164.45 156.17 148.12 131.56 Unit rate. 35.00 33.25 31.50 28.00
50 . .. 107.25 101.85 96.60 85.80 TRAVELING DISPLAYS
Unit rate. 7.15 6.79 6.44 5.72 22" x 42":
TRAVELING DISPLAY (left and right) Showing: 1 mo. 3 mos. 6 mos. 12 mos.
20" x 44": 100 . €00.00 570.00 540.00 480.00
Showing: 1 mo. 3 mos. 6 mos. 12 mos. 50 . 300.00 285.00 270.00 240.00
100 . „ 214.50 203.70 193.20 171.60 Unit rate. 10.00 9.50 9.00 8.00
75 . .. 164.45 156.17 148.12 131.56 21" x 72" (Rear):
50 . .. 107.25 101.85 96.60 85.80 22.00 per space per month on firm 12 months con¬
Unit rate. 7.15 6.79 6.44 5.72 tract only.
TRAVELING WRAP-AROUND (TROLLEY 21" x 33" (Front):
BUSES ONLY) 12.00 per space per month on firm 12 months con¬
(left and right rear) tract only.
Showing values:
100 showing—64 units. Inside Rates
75 showing—48 units. Service values:
50 showing—32 units. Full 140 vehicles.
25 showing—16 units. Half 70 vehicles.
22" x 17": Quarter 35 vehicles.
1 mo. 3 mos. 6 mos. 12 mos. Service:
Showing: ll"x28": 1 mo. 3 mos. 6 mos. 12 mos.
100 . .. 640.00 608.00 576.00 512.00
.. 480.00 456.00 432.00 384.00 Full . 315.00 299.25 283.50 252.00
75 . Half . 157.50 149.50 141.75 126.00
50 . .. 320.00 304.00 288.00 256.00
.. 160.00 152.00 144.00 128.00 Quarter . 78.75 74.75 70.75 63.00
25 . 11" x 56":
Unit rate. _ 10.00 9.50 9.00 8.00
Full . 469.00 445.55 422.10 375.20
Insidi Rates Half . 243.50 231.25 219.15 194.80
Service values: Quarter . 117.25 111.25 105.50 93.80
Full 193 vehicles. Special Transit Advertising Promotions
Half 96 vehicles. Take-One charges per month: .50 per card, non-
Quarter 48 vehicles. commissionable.
Service: Kleen-Tear Service: .35 per card monthly charge,
11" x14": non-commissionable.
60% of 11" x 28" rate.
 265
Exterior Transit Advertising Outdoor
Advertising,
Transit
The chief form of exterior transit advertising is that carried on the outside
Werbung
of buses. They pass through the neighborhoods where people live, shop, work.
They provide great reach for any message. In larger cities, the advertiser can
select the routes that best reach the demographic group he seeks. These signs
are virtual traveling outdoor signs, reaching pedestrians at eye level and
telling their stories to riders of passing cars, even to the riders of other buses.
They reach many who never travel inside the bus, and reach out to a wide
unselected audience at a law cost per thousand.

How Exterior Bus Space is Sold

The sizes of space units in most widespread use are the following:

King Size 30"x144 (for side of bus)

a
Queen Size 30"x 88"
a
Traveling Display 21"x 72"
Taillight Spectacular 21"x 72" (for rear of bus)
Headlights 17"x 21" (in front)
21"x 44"

Of those above, the King Size, Traveling Display Size, and Headlights signs
are most widely used.
A handful of lines also offer a Bus-O-Rama sign, a fully colored
backlighted, transparency roof sign, running the length of the bus, 21% by
144% inches.
Space is sold usually by the showing, or by the unit, by the month,
with time discounts at the three- six- and twelve-month levels. Shoiving in
outside bus advertising has a meaning different from that for interior bus

Exterior Bus
 266 advertising. It is an arbitrary number of units that the line operator sets. The
Media
usual 100 showing in the largest cities is 400 units. This goes down to 25
units in the smaller cities. Based on this figure, proportionately there are also
75, 50, and 25 showings, which are sometimes called full service, half service,
and quarter service (just to bewilder the beginner, no doubt).
How transit rates are quoted. The rates for the outside of buses are
published in the Standard Rate & Data Service. The rate card covers:

—the average monthly rides (twelve-month average)

—the sizes and number of units for different sizes (King, Queen)
—whether for left side, right side, or both
—the number of units in a 100 or other showing. Sometimes the rates
are just quoted by number of units.
—the cost per month at rates from one to twelve months

For example, here are how the rates for a King Size Display 30" by 144" are
quoted in different cities:

Long Beach, California:

No. of rides—twelve-month average, 937,997
Position—left only
Quantity—quoted by units 20-50
Basis of charging—number of units
Costs—20 units-$23 per unit for one month
Indianapolis:
Number of rides—twelve-month average, 1,755,448
Position (right & left)
Quantity of units—100 showing = 80 units
Basis of charging—By showing
Cost—100 showing (80 units) $3,200 for one month
Baltimore:
Number of rides—twelve-month average, 9,851,240
Position—both sides
Quantity of units—100 showing =120 units
Cost—$4,800 for one month

In most larger cities the cost for a King Size outside poster averages
around $40 per display per month on a 100 showing basis, and $20 to $30 in
smaller ones, subject to lower rates for longer contracts.9

The Basic Bus

The basic bus represents one of the newer developments in bus ad¬
vertising, whereby one advertiser can buy all the cards inside a bus. He can

9 Source: Standard Rate & Data Service, November 1972.

use it for one product, or for his line of products. He can have a long display 267
Outdoor
covering several of the display panels, for variety. This means that for the Advertising,
duration of the bus ride—about 22 minutes, on the average—the rider is Transit
Werbung
surrounded by the massive presentation of one advertiser.
An advertiser gets the exclusive run of basic advertising as against
competitors for the duration of the contract run. The cost per bus is low, but
the order is usually based on a large number of buses.
An advertiser can also buy all the advertising space on the exterior
of a bus—front, back, sides, and top. This is called a total bus. This too is
on an exclusive basis per industry. Elgin Industries, Inc., scheduled 800 total
buses in Chicago, Los Angeles, and New York, for a one-month preholiday
campaign for its watches, sailboats, hi-fi sets, and washing machines, exposing
their entire line to riders who were not aware of its diversity of products. If
the advertiser combines a basic-bus buy with a total-bus buy, he is said to
have bought a total total bus. You can’t buy more on a bus than that.
Basic buses are not available in all cities, but the number of cities no
doubt will increase.

Station and Platform Posters

Poster space is available on the walls of many bus, subway, and train
stations. Since the passenger has time to read while waiting for his transpor¬
tation, there is opportunity to have more copy on these posters read. Since
suburbanites visit the stations regularly, there is more opportunity for fre¬
quency.
The posters here are of standard sizes, of which the one sheet (30
inches high by 46 inches wide) and the two sheet (60 by 46 inches) are most
common. There is also a three sheet (90 by 46 inches).
The New York subways—the largest users of station posters—are
reducing the number of one-sheet posters, replacing them with a fewer num¬
ber of two-sheet posters, reducing the clutter, and improving the quality of
the frames. This wider two-sheet poster permits the adaptation of art work
from television and magazine advertising, providing continuity to the adver¬
tising.
The Basic Bus
 Displays in Grand Central
Station in New York City

Courtesy, Transportation Dis¬

play, Inc.

In the sale of station and platform advertising, the number of posters

is identified in terms of showings, but here they speak of them as intensive
showings, representative showings, and minimum showings. In each instance,
the plant operator announces how many posters are involved in each bracket.

Trains and Air Terminals

One sector of the transit advertising industry specializes in commuter

trains and train terminals. There are such train stations in about 50 cities,
serving over 400 communities.
In New York, Philadelphia, and Chicago, two out of three executives
commute from home to office by train. The level of affluence of commuters is
higher than that of riders in subways and buses. The average length of rides
is 44 minutes; usually passengers have seats and plenty of opportunity to see
the signs in the trains, and on the stations while waiting for the trains. There
is also the advantage of frequency of exposure of the signs.
Airports and terminals provide another opportunity for reaching a
special audience. Eighty-six percent of all flights are for business trips by
executives, business men, or professionals. And to the airports come not only
those who are flying, but those who want to see them off or await their ar¬
rival.
A characteristic of major train and airline terminals is the variety of
advertising forms available to the advertiser: floor exhibits, two-sheet posters,
dioramas (three-dimensional scenes), island showcases, illuminated signs,
and clocks. If ever you find yourself in an air terminal with time on your
hands (that does happen), you can make good use of it by seeing how many
different forms of advertising you can spot.

Trends in Transit Advertising

In I960, $22 million was spent in transit advertising. In 1969, the figure
was $35 million, an increase of 61 percent.10 During this time, the industry

10 Transit Advertising Association, 1971.

268
established a firm base for figuring circulation and attained continuing recog¬ 269
Outdoor
nition as a standard advertising medium by its special section of the Standard Advertising,
Rate & Data Service. Transit
Advertising
The basic bus made its appearance. The full use of the interior and
exterior of a bus by an advertiser will become increasingly popular.
New transit systems, like the BART (Bay Area Rapid Transit) sys¬
tem in San Francisco and the Washington, D.C., subway system, will increase
the total audience exposed to transit advertising, as will the increase in riders
on the present public transportation routes. There is increasing pressure on the
government to put more funds into mass transportation efforts.
Continued progress will be made to give the advertiser more definitive
information about the effectiveness of transit advertising in delivering its
messages to riders.
Ther£ will be an increase in the use of transit advertising in connec¬
tion with other media being used within a market.

Review uestions

1. What are the major advantages and 7. Discuss the three main copy con¬
limitations of outdoor advertising? siderations involved in developing
outdoor advertising.
2. What is meant by:
8. What is a full showing, and a half
a. 24-sheet poster
showing, in interior bus advertising?
b. #100 showing (outdoor)
c. rotary plan 9. What are the major advantages and
d. plant owner limitations of transit advertising?
e. riding a showing
10. Define interior and exterior transit
3. Identify the three main forms of advertising, and describe their rela¬
outdoor advertising and describe tive share of transit advertising vol¬
their distinguishing characteristics. ume.

4. How did the 24-sheet poster get 11. How is interior transit advertising
its name? What is its size? circulation computed?

5. How is outdoor advertising circula- 12. What is the "basic bus"?

lation computed?
13. At a nearby bus, train, subway, or
6. What considerations besides circu¬ air terminal, list the variety of ad¬
lation should enter the advertiser’s vertising forms available to adver¬
decision to buy a particular location ? tisers.

Reading Suggestions

Barton, Roger, The Handbook of Ad¬ Litka, Michael P., "Aesthetic Standards
vertising Management. New York: and the Regulation of Outdoor Ad¬
McGraw-Hill, 1970. vertising,” Business Perspectives, Fall
Houck, John, ed., Outdoor Advertising: 1968, pp. 17-21.
History and Regulation. Notre Dame, Media Decisions, "Outdoor: It’s Full
Ind.: University of Notre Dame Press, of Surprises," September 1970, p. 40.
1969.
12
Supplementary Media

There are a number of supplementary media that may prove useful in

rounding out an advertising campaign. True to the meaning of the word
''supplementary,’’ they serve to "reinforce and extend the whole." Among the
forms of such advertising are specialty advertising, films, directories, and pro¬
grams. Often the use of such media overlaps the efforts of the sales and public
relations department, but since the materials used are forms of advertising, we
include them in our media discussion.

Advertising Specialties

An advertising specialty is a useful object bearing the advertiser s name or

message, given to a carefully defined audience as a goodwill offering, without
any cost or obligation to the recipient. The category includes calendars, pens,
matchbooks, memo books, key rings, can openers, bottle openers, measuring
cups, shop aprons, shopping bags, golf balls, car windshield scrapers . . .
anyone who tries to make a fuller list will be prepared to accept the industry
statement that there are 10,000 advertising specialties.
An advertising specialty differs from a premium in that a premium
requires a proof of purchase, often accompanied by a charge. There is no
limit to the amount charged for a premium. The advertiser s name, as a rule,
does not appear on the premium, which is a merchandising inducement rather
than an advertising medium. An advertising specialty is an advertising me¬
dium; it carries a name and/or a message; it is given free; it is usually quite
inexpensive. Few reach the $4 maximum allowed by law as not subject to
the business gift tax rules. The great advantages of the specialty are that it is
a useful goodwill gift, and that it keeps the advertiser s name before the
recipient for a long time.
Limitations of the advertising specialty are the shortness of the mes¬
sage it can deliver, and the problem of getting it into the right hands. Adver¬
tising specialties are not a substitute for advertising in the mass media; each
of these serves different functions.

270
Examples of Specialties

524-8000
&USTON

nKO'ITfc

%t*x<*to<**
*Km* fW
 272 Forms of Specialties
Media
Calendars. One of the oldest and most widely used forms of spe¬
cialty is the calendar, and we give them this special mention. Gaw reports
surveys showing that 75 percent of all calendars produced are kept by the re¬
cipients. One firm, making a special study, found 87 percent of the homes to
which it had distributed the calendar had kept them on the walls. One com¬
pany, which had distributed 250 calendars with a reorder page attached to
each, received 248 unsolicited requests for calendars the following year.3

Writing instruments. The second largest class of specialties sold are

writing instruments for office, home, and pocket. The flow of ballpoint pens
seems endless, but how many are resting unused and unusable in desk drawers
we’ll never know. Nevertheless they are popular.

Matchbooks. Matchbooks continue to be a highly popular form of

advertising, especially for restaurants and hotels. Matchbooks come in differ¬
ent sizes and forms, to give distinctiveness. We have a particularly apt use of
matchbooks in the case of the Phifer Wire Products Corporation soon to be
discussed.

A personal test. Here’s something interesting. Make a list of every

specialty you have on your person, in your study, office, home, or car. Put
down first the number you think you have. Compare it with the final number.

The Distribution of Specialties

The industry is divided into supplier, distributor, and direct selling

houses.
A supplier manufactures, imports, converts, imprints, or otherwise
processes advertising specialties, calendars, or business gifts for sale through
specialty-advertising distributors.
The man who buys from the supplier and sells to the user is tech¬
nically the distributor. Actually he is better known as a specialty advertising
counsellor, for he acts not only as a distributor for suppliers, but as counsel
on the promotion or campaign, providing the ideas and the copy, as well as
the items.
A direct selling house combines the functions of supplier and dis¬
tributor within one organization. It primarily manufactures its own products
and sells them directly to advertisers through its own sales force. Many firms
handling specialty advertising also handle business gifts not bearing the ad¬
vertiser’s name, but sometimes the name or initials of the recipients; also
merchandise suitable as incentive prizes for salesmen and distributors.

3 Walter A. Gaw, Specialty Advertising, 2nd ed., Specialty Advertising Association,

1970.
 The Use of Specialties 273
Supplementary
Media
Specialties may well be considered when there is a specific and limited
group of people whose goodwill you wish to incur and develop. It may be a
defined group of prospective customers, it may be present customers, it may
be those in a position to influence important sales—like architects, physicians,
and certain corporate officials. The use of the specialty should be part of an
organized plan for reaching these defined audiences.
Specialties are widely used by local stores and institutions for specific
periods of time to reach specified audiences. They are used by national ad¬
vertisers to reach distributors and salesmen. They are used by industrial
advertisers to reach those who are in the decision-making area involving the
selection of their equipment. They are used by advertisers to commemorate
some important events, such as a significant anniversary, the launching of a
new model, or the opening of a new branch.
The qualities desired of a specialty are that it be useful, durable, used
often, and if possible unique and apropos. If it is easily mailable, so much
the better.
The following guidelines for an effective specialty promotion are
recommended by the Specialty Advertising Association:

1. Define the objectives—know what the program is expected to

accomplish.
2. Identify the target audience.
3. Develop a suitable distribution plan.
4. Choose an advertising theme that will reflect the product or
service being offered.
5. Develop a message to support the theme.
6. Select the specialty advertising article, preferably one that bears
a natural relationship to the product, service, or advertising theme.1

The advertiser can distribute his specialty in a number of ways: He

can hand it out directly, as might a bank giving calendars to its depositors. He
can mail it along with a letter, which may get more attention because of the
gift. National advertisers usually distribute their specialty through the sales
departments, in conjunction with an advertising campaign or promotion tak¬
ing place at that time. They may distribute the specialty to the wholesaler for
distribution to his customers. This is often done on a cooperative basis, which
not only reduces the cost to the advertiser but, more important, enlists the
vigilance of the wholesaler in seeing that the gifts are not wasted. Handing

1 Specialty Advertising Association, 1971 reports.

 274 out an inexpensive gift is standard practice at most business conventions and
Media
trade shows.
In each instance, the distribution of a specialty is to a preselected
target audience. The biggest problem in the use of specialties is controlling
the distribution and checking the results.

Some Cases in the Use of Specialties

Perhaps the quickest way to get an insight into the effective use of
specialties is to cite some cases from the group of prize winners at an annual
competition of the Specialty Advertising Association: 2

Gateway National Bank, Fort Worth, Texas

PURPOSE: To increase traffic and generate new accounts by acquaint¬
ing newcomers to the area with the bank.

SOLUTION: Managers of apartment complexes were called on by a

bank officer with coaster sets in cellophane for distribution to new
tenants, together with a letter of welcome to the bank.

RESULTS: Deposits increased approximately 30 percent during cam¬

paign.

2 Courtesy Specialty Advertising Association.

Cincinnati Milling Machine Co. 275
Supplementary
PURPOSE: To increase sales of the company’s cutting fluid and Media
grinding wheels.

SOLUTION: As an annual promotion, Cincinnati Milling offered its

distributor salesmen a complete specialty advertising program—on a
cooperative cost basis—for quantity distribution to customers and
prospects. Advertising specialties included in the program were a
golf tee pack, ice scraper, bottle opener with plastic caps, ballpoint
pen, and mechanical pencil; all were provided with the corporate
advertising message as well as the imprint of the local distributor.

RESULTS: Cincinnati Milling was very pleased with the program.

Distributors participated heavily and advertising specialties bearing
the company message received especially widespread distribution.

Trans World Airlines, Inc.

PURPOSE: To increase awareness, in the commercial travel market,
of the worldwide points served by TWA.

SOLUTION: The target audience consisted of executive secretaries,

who are in a position to influence the travel plans of top executives
for whom they book travel arrangements. Secretaries received, first,
a charm bracelet with one charm attached. Succeeding mailings each
included a charm depicting a different faraway location. Each charm
was accompanied by a letter.

RESULTS: A marked increase in commercial boardings by executives

whose secretaries received the mailing. TWA representatives who
made follow-up calls enjoyed excellent receptions.
 PURPOSE: To develop customers for a new aluminum insect solar
screening.

SOLUTION: To selected window screen fabricators went a test mail¬

ing of giant matchbooks and a personal letter. The Sun Screen story
was spelled out on the matchbook cover, and specific features of the
product were outlined on the oversized individual matches. A swatch
of the screening was inserted behind the rows of matches, and fabri¬
cators were invited to light a match, hold it behind the screening
and see for themselves how the product blocked out glare without
obstructing the view.

RESULTS: None of the 250 prospective fabricator customers had

ever been approached by the company before. Of these, 83 ordered
test rolls, 67 of whom later placed substantial repeat orders. The
company attributed sales of more than $100,000 to the promotion.

TAKE AN EKTRA 60 SECONDS

Toll your customer about SUKSCRSfi*
the all aluminum insect solar screening
You'd he niottej? ahead and your cus
temer w(l* benefit too.
Horaaowtm throughout the catiirtry
ere asking for SuNSCBfEtf because It
offers daytime privacy, prevents son
damage to drapes, rugs and )Ur„jtwt,
reduces room temperatures tJp to 15.
and lowers Over-el! eooling CoSts

Sunscreen
STOCKS THE $un
NOT THE mw

•• <•

mmW®m
 217
Films Supplementary
Media
Many companies use films to good advantage in getting different aspects of
their story to various markets.
We have films sponsored by advertisers that are of sufficient interest
to be run as shorts between features at movie houses; these are called theatrical
films. We have other films designed to be shown before selected groups; these
are broadly referred to as sponsored films. If prepared to be shown before
business, technical, or professional groups, they are called business films.

Theatrical Films

About 12,000 theaters in the United States, both "hardtops” and

drive-ins, show advertisers’ shorts between their features.
These showings provide an advertiser with a mass audience in selected
territories. Their length is usually ten minutes or less. A single print can
reach an average audience of 50,000 viewers annually; a single print is good
for three to four years, with a total potential viewing in its lifetime of
1,500,000 to 2,000,000 people. Advertisers order between 20 and 200 prints
of a picture.
To be acceptable in film houses, the film must be entertaining, with¬
out commercials in the TV sense, and with high pictorial quality. The favorite
pictures are sports and travel, in which the role of the advertiser’s product
can be naturally but not obtrusively shown.

Theater film procedure. When embarking on a film operation, the

advertiser will select one of the many film producers specializing in producing
sponsored films. Most of them are located in the large metropolitan centers—
especially Los Angeles, Chicago, and New York. These firms will prepare the
script, shoot the picture, and make the necessary prints. The advertiser will
then turn his film over to a film distributor. In the case of theater films, these
distributors work through the various film exchanges through which all mo¬
tion pictures are exclusively distributed to movie houses. The costs per booking
depend upon the length of the film, and are billed at the end of the month,
when the advertiser receives a report of the theaters where his film was shown,
and their attendance.

Sponsored Films

Millions of children have seen a ten-minute, colored, animated Disney

cartoon, How to Catch a Cold, dramatizing ways of preventing a cold. The
movie was sponsored by the makers of Kleenex tissues, supplementing their
regular advertising program with an educational goodwill selling message.
 >>
c
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This film is typical of 150,000 other sponsored business films—for example, 279
Supplementary
Athletic Injuries—Their Prevention and Care, issued by the Kendall Com¬ Media
pany; Beauty in the Making, issued by Avon Products; and Jet Freighters
Move at Night, issued by American Airlines—that are free for group showing.
Such films are known as sponsored films (as distinguished from the theatrical
films previously discussed). They are also called business films.
The essence of a good sponsored film is that it be educational and
otherwise interesting, that it not attempt to compete with films that just enter¬
tain, nor, on the other hand, rely on merely a "trip through the factory."

Sponsored film procedure. As in the case of the theater film, the

advertiser is responsible for having his film produced, and he can do this
through the professional film-producing houses. For the distribution and
showing of his film, he can turn to one of the film-distributing houses. These
firms have built up extensive lists of groups who are receptive to showing
sponsored films to round out their programming needs. From their lists, the
advertiser can select groups that meet the demographic audience he is trying
to reach. The distributing firm handles all the details, such as arranging for
the booking, physically getting the film into the right hands, providing pub¬
licity material to help the program chairman get the crowd out, checking per¬
formance, and billing. The charge for this service is a fixed fee per showing.
To give an idea of how comprehensive and resourceful film distribu¬
tors are in finding audiences for the advertiser s film, we quote from the re¬
port of the Modern Talking Picture Service, Inc., one of the large firms in
the field:
The community audience
This is the primary audience for sponsored films. It includes clubs,
churches, men’s service clubs, women’s clubs, fraternal societies, and
other community clubs that bring people together; in fact any audi¬
ence that owns or has access to a 16-mm. sound projector. The
audiences are receptive, because they ask for films of particular in¬
terest to them (from an extensive catalog).

The airport audience

In major airports throughout the country, we operate free movie
lounges for waiting travelers. About half the viewers see three or
more sponsored pictures while they are waiting.

The resort audience

During summer months, sponsors can reach affluent vacationing
families through a special distributing operation that serves over
1,500 resorts, with a different sponsored film each night.

The television audience

Almost all TV stations use sponsored films. Though not all films are
suitable, those that are reach millions of viewers with their message.
 280 Sixteen percent of the films are shown during evening hours. Most
Media
daytime films are shown weekends.

The college audience

We have created a network of free campus movie lounges to reach 3
million college viewers a year.

Videotape audience
This consists primarily of high schools, colleges, business organiza¬
tions, medical groups that have access to video playback machines.4

The charges for distributing films are a fixed fee per booking or
showing. The initial cost of a film is high, not only in direct expense, but in
the time it takes to go through the meetings with different company officials
to clear all technical and policy questions. Furthermore, films are for firms
that wish to venture with a part of their budget on paths other than the
straight dollar competition in the mass media. Films can be a valuable supple¬
mentary medium.

Consumer Directories—the Yellow Pages Directory

The Yellow Pages telephone directory is a unique institution in advertising.
It is published in over 5,000 cities; it is published also all over the world. An
advertiser can specify the exact territory he wants to reach. The directory is a
separate volume in the larger cities, and a part of the white-page directory in
smaller sections. It is published in uniform type style and size throughout the
world. It is widely used by local merchants and service organizations. It is
extensively used by national advertisers in connection with a "Where to buy
it" listing, giving the names of their dealers; often this is a cooperative deal,
or they may list their own branch offices or factory service branches. The system
provides uniform control by the advertiser of the distributors’ listings in the
county. National advertisers of products that are bought in showrooms, or on
home or office demonstration, frequently say in their ads, "See Yellow Pages
for nearest dealer.”
The Yellow Pages has its own extensive rate book. Rates are quoted
by the month, and billed annually. A national advertiser can place all his
business on a one-order basis.

Programs
Advertisers may reach target audiences for their product through the pro¬
grams of the events they attend—sports events, plays, concerts, the opera.

4 Courtesy, Modern Talking Picture Service, Inc.

For example, an advertiser can reach most theatergoers in New York City 281
Supplementary
through Playbill, a miniature magazine issued with the particular program Media
and notes relating to each theater, and dependably operated.
Programs may be effective for products that are already well known.
Their cost per thousand must be compared to alternate media for reaching
the same audience. Their cost per thousand is usually high; the homogeneity
of the audience may be worth it. A problem in the use of most programs is that
of verifying circulation.

. . . . and Other Forms of Supplementary Media

In addition to the media discussed here, there are other forms of communica¬
tion—shopping bags, shirt boards, movable lighted signs projected on the
sides of buildings, textbook covers and ads inside notebooks, skywriting, and
whatever other ways the ingenuity of man develops for delivering an adver¬
tising message. The important points to keep in mind at all times about the
media are that their use should begin with a plan; yardsticks should be estab¬
lished for determining the value of any of them; steps should be taken to
assure receiving the circulation, distribution, or audience for which one is
paying; goals should be established as to what is expected, and procedures
should be established for appraising the results.

Review Questions

1. What is an advertising specialty? 4. List the specialties in your own pos¬

How does it differ from premiums ? session, on your person, in your room,
or at home.
2. What are the major uses and limita¬
tions of specialty advertising? 5. Define and explain the differences
between theatrical and sponsored (or
3. Discuss several ways in which an ad¬ business) films.
vertiser may distribute a specialty ad¬
vertising article. 6. What are some of the major audi¬
ences for sponsored films?

Reading Suggestions

Anny, "A Premium User’s Nightmare,” Herpel, George L., and R. A. Collins,
May 10, 1968. Also in Kleppner and Specialty Advertising in Marketing.
Settel, Exploring Advertising, p. 258. Homewood, Ill., Dow Jones-Irwin,
Gaw, Walter A., Specialty Advertising, 1972.
2nd edition. Chicago: Specialty Ad¬
vertising Association, 1970.
 »

'

■
 IV
CREATING
THE ADVERTISING
’

'
 13
The Behavioral Sciences
in Advertising

Driving on a highway overlooking the modest-sized backyards of a ten-

year-old development of middle-class homes, one is struck first by the simi¬
larity of the houses and lots. But a second and third look are more illuminating.
For behind the similarity in size and shape of the backyards lie differences,
differences that reflect the individual interests, personalities, and family situa¬
tions of those who live in the homes. One backyard, for example, has been
transformed into a carefully manicured garden. Another includes some shrubs
and bushes, but most of the yard serves as a relaxation area, with outdoor
barbecue equipment and the like. A third yard is almost entirely a playground,
with swings, trapezes, and slides. A swimming pool occupies almost all the
space in another yard. Still another has simply been allowed to go to seed,
and is overgrown and untended by its obviously indoor-oriented owners.
If you wanted to advertise to this community of people, you would be
speaking to people with different interests, different tastes. The study of
these differences among people is where the behavioral sciences make their
contribution to advertising.

What Are the Behavioral Sciences?

The decision of someone to buy a product is the end effect of many influences.
Some of these may reach back to his cultural heritage (as might his food
preferences). The study of Jinan’s pi Rural heritage is the province of the
ant hr o polo gist. A man’s decision may have been shaped by ' the right thing
to do” among his friends (see how alike they are in dress). The^study_ofjmaji
as part of a group is the field of the sociologist. A man s action may be a
direct result of his own goals and desires (as in buying a particular car). Man s
reaction to his drives is the psychologist’s zone of study. These disciplines often
overlap, but they are all part of the behavioral sciences. The field of consumer
behavior represents the coming together of all the behavioral sciences in the
study of how and why we buy as we do. In addition to reviewing the con-

285
 286 tributions of these disciplines, we shall look at some other approaches to
Creating
understanding and explaining consumer behavior. We do not presume to
the
Advertising offer a comprehensive survey of the behavioral sciences, nor do we venture
to join a discussion as to where to draw lines among them. We merely touch
upon some highlights of these fields to show their relevance and usefulness
to advertising.

Anthropology and Advertising

When one says "anthropology,” the first thing that comes to most people’s
minds is the study of primitive societies. But anthropologists study the cultures
of all societies, and from their work they have found certain needs and activi¬
ties that are common to man wherever he is. One such list includes 73 items,
among them bodily adornment, cooking. courtshipr-^oed-Taboos. gift giving,
language, marriage- statns1 sev and i Each society attaches its own
values and traditions to such considerations. In some societies, to this day the
marriages are arranged by parents.
V" The anthropologist sees the United States as a pluralistic society made
up of an array of subcultures, each representing a different way a group of
people live and the values, customs, and traditions its members have in com¬
mon. That some 500 radio stations broadcast programs in 50 languages bears
witness to the strength of cultural identification in the United States. Every
man is born into a society and is taught its culture. It has a permanent influ¬
ence on him, even if he moves into another culture.
* Anthropologists make major contributions to advertising through
their study of the distinctive living patterns of cultural groups and subgroups.
Ethnic, religious, and racial subgroups all have their identities. These can
affect food preferences, language, customs, styles of dress, roles of men and
women—all of which may in turn affect the advertiser.
A major exploration of comparative household expenditures by black
and white families showed some distinct differences, amounting to 6.6 percent
of all spending. For example, black families spent more on clothing, personal-
care products, household furnishings, and alcoholic beverages than did whites.
The pattern suggested by the researchers was that black families spend more
than do comparable white families on maintaining appearances and immediate
gratification.1 2
Some ethnic groups prefer highly spiced foods (like Polish or Italian
sausage) or distinctively flavored foods (such as Louisianan chicory-flavored

1 George Peter Murdock, "The Common Denominator of Cultures,” in The Sci¬

ence of Man in the World Crisis, ed. Ralph Linton (New York: Columbia University Press,
1945), pp. 123-42.
2 Raymond A. Bauer and Scott M. Cunningham, Studies in the Negro Market
(Cambridge, Mass.: Marketing Science Institute, 1970), p. 22.
Does an Italian wine go with
Noel, La Navidad,
Hanukkah and We

Bolla does.

A handsome wooden-rack filled with 6' bottles ofdelightiua

Bella wine imported from Italy * About $20. Feel free to give
the Bella Gift Selection to anyone, any time. It will be the
nicest compliment a holiday ever had. No matter what lan¬
guage you feast in.

IBS m
Gift Selection
2 bottles each of Soave and Bardolino, 1 each Vaipolicella and Rose

Anthropology in Advertising

An advertisement which recognizes that people have different cultural backgrounds.

 288 coffee). Indeed, many dishes favored in certain parts of the country are a
Creating
direct identification of people in that area with their cultural past. Pennsyl¬
the
Advertising vania Dutch cookery, with its fastnachts and shoofly pie, has its roots mainly
in the valley of the Rhine. In North Carolina, the serving of lovefeasts (sugar
cake, Christmas cookies, and large white mugs of coffee) is its Moravian
(Czechoslovakian) heritage, while in Rhode Island, tourtiere (meat pie) re¬
flects the French-Canadian influence. We have Cornish pasties (meat and
vegetable pie) in Michigan, the Norwegian julekake in North Dakota, and
Swedish kaldomar (cabbage rolls) in Illinois. The heavy influence of Mexico
is revealed in the tamale pie and other Mexican-style foods of southern Cali¬
fornia and the Southwest.
^There are regional variations in the American language, too. For
example, creamed cottage cheese is known as schmierkase around Cincinnati,
while what is cottage cheese to most Americans is cream cheese in New Or¬
leans. A snap bean in Virginia is a stringbean elsewhere; salad in Virginia
means kale and spinach, which are called greens in other parts of the country.
In Kentucky, green or regular garden peas are called English peas, while
mashed or whipped potatoes are called creamed potatoes. When citizens of
Indiana speak of mangoes, they refer to sweet green peppers. In Key West,
evaporated milk is referred to as cream, and sweetened condensed milk is
milk. Pancakes in Texas are called batter cakes, while cakes are known as
sweetbreads.

vMilestones of life. There are certain points in everyone’s life when

he passes from one stage of life to another, such as coming of age and mar¬
riage. In any society these are deeply significant times. In our society, these
milestones usually have products associated with them as symbols. For ex¬
ample, a girl’s becoming a young woman (her first bra or high-heei shoes),
a child’s going off to school (new clothes or first lunchbox), one’s marriage
(bridal gifts), one’s first child (baby gifts or family insurance).
* An advertiser of "training bras” would be interested in knowing
about the product’s meaning as a symbol of "growing up” to both daughter
and mother. This in turn might affect the extent to which the advertising
would be oriented to the daughter herself ("now you’re growing up”), to
the mother as a mother ("when a daughter needs her mother”), or to the
mother as the girl she once was ("remember when”). Likewise, the appear¬
ance of facial hair is part of a boy’s coming of age. His first razor or shaver
is usually a big event for him as well as for his father. Insights help make clear
the symbolism of such events and help make it easier to understand the deeper
meaning of products associated with them.

The roles played by the sexes. In different cultures and in different

eras, the sexes may play different roles; this is another area of anthropological
study that is relevant to advertising. Winick gives a Canadian example from
 The phone company wants
more installers like Alana fVlacFarlane.
Al ana fliiacF artane is s
from Saw itaf»<e!, California, She’s one
of our first women telephone installers.
She won’t be the last.
We also have several honored male
The Changing Role of Women telephone operators. And a policy that
there are on aft-male or all-female Jobs
at the phone company.
We want the men and women of the
telephone company to do what they want
to do, and do best.
For example, Alana likes working
outdoors. ''I don't go for office routine.”
she said. "But as an installer, i get plenty
of variety and a chance to move around,”
Some people like to work with their
hands, or. like A!ana, get a kick out of
working 20 feet up in the air.
Others like to drive trucks. Some
we re helping to develop into good
managers.
Today, when openings exist, local
Bell Companies are offering applicants
and present employees some lobs they
may never have thought about before. We
want to help all advance to the best of
their abilities.
AT&T and your local Belt Company
are equal opportunity employers,

the experience of an advertiser trying to address the French-Canadian house¬

wife. The advertisement showed a woman in shorts playing golf with her
husband. Winick points out that in the French-Canadian culture the wife
would not be wearing shorts and would not be playing golf with her husband.3
y The changing roles of women and men in the United States—par¬
ticularly in the work force—are reflected in the AT&T advertisement above.
"Woman’s work" at the telephone company had traditionally been regarded
as chiefly sitting at switchboards. Now not only do women act as installers,
but the telephone company reports that it also has several hundred male
switchboard operators. All this reflects a basic cultural change in our society.
Anthropology helps sharpen our insights into such changes taking place
around us.

3 Charles Winick, "Anthropology’s Contributions to Marketing,” Journal of Mar¬

keting, July 1961, pp. 53-60.

289
 290 Society’s changing values. Another example of how society’s chang¬
Creating
the
ing values and cultural norms can affect advertising is our attitude toward
Advertising debt, important to firms selling products with large price tags and to companies
making Jpans to consumers.
For many years after the depression of the 1930’s, most Americans
believed that personal debt for product purchases was something to work one’s
way out of, that to pay off one’s installment bills and to be free of debt was
an important goal. The only long-term debt viewed as "normal” was a home
mortgage. This attitude toward debt persists in the seventies with many
families. However, many other families, particularly among younger Ameri¬
cans, look upon such debt differently. For them, installment debt has become
part of their way of life—not just for home mortgages, but for cars, appli¬
ances, home furnishings, vacations, and the like. (An interesting reflection of
the traditional attitude is linguistic: the German word for debt is the same as
that for "guilt”!) Household Finance Company tries to link its advertising for
consumer-loan services to the older tradition: "Never borrow needlessly” is
part of their basic message.

Sociology and Advertising

The sociologist views man in relation to others. He observes man’s identifica¬

tion with a group—its influence on him, and his on it. Whenever a consumer
asks himself, "What will they think?” he is behaving according to one or more
reference groups. These "reference groups” can be face-to-face groups
(friends, family) or impersonal groups with which an individual may identify
himself. For example: An Oldsmobile television commercial serenaded a
happy man riding about town in his new car with the theme, "If your friends
could see you now.” A Wall Street Journal ad for a major Southern utility
company asked and answered:

What do a Boston banker, a New Orleans bottler, a California in¬

surance executive, and planters from Arkansas and Mississippi all
talk about when they get together? Middle South Utilities in the year
2000.

Social class and stratification. One characteristic of an industrial so¬

ciety such as that of the United States is that it is clustered into many classes.
The standards around which these classes form may be wealth, income, occu¬
pation, achievement, or learning, among others. Each person senses where he
fits into this pattern; he identifies himself with others in his class ("these
are my kind of people”) and generally conforms to its standards.
An understanding of social-class structure helps explain why data
on income, occupation, and other demographic categories sometimes fail to
provide meaningful insights into consumer characteristics. For example, a
 i Who is the Pepsi generation? Everyone

s»Ji*»
with a young view of things! Livelier
people with a liking for Pepsi Cola.
Famous regular Pepsi-with the bold,
clean taste and energy to liven your
pace. Or new Diet Pepsi-with that same
honest-to-Pepsi taste and less than a
calorie a bottle.The Pepsi generation?
It’s a whole lot of people like you!
IF DIET PEPSI IS NOT AVAILABLE IN YOUR AREA, IT WILL BE SOON '

-PEPSI _ COL A" AND "PEPSI** ARE TRADEMARKS OF PEPSI -COLA

COMPANY. REG. U. S. PAT. OFF. © 1964. PEPSI - COLA COMPANY

u ii
Sociology in Advertising

An advertisement based upon the drive to be identified with a group.

 292 young professional and his working wife may have the same family income as
Creating
a senior factory foreman—but their interests in products will be worlds apart.
the
Advertising Martineau points out that a rich man is not simply a poor man with more
money, and given the same income, the poor man would not behave exactly
like the rich man. He cites studies that revealed that the lower-class person is
profoundly different in his mode of thinking from someone in the middle
class. Where and what he buys differs not only in economics but in symbolic
value.4
Our knowledge of social-class behavior is based on the pioneering
work of W. Lloyd Warner and his colleagues. In their studies of American
communities, they have identified six groups of Americans, each group seem¬
ing to share similar ways of looking at life. Warner’s associate, Richard Cole¬
man, drew these pictures of six social classes:

1. Upper-Upper. This small (less than 1 percent of a community)

group of people comprises locally prominent families who live
graciously and are concerned with reflecting their good breeding.
2. Lower-Upper. Another small (2 percent) group, this one com¬
prises more recently arrived wealthy families and very successful
executives and professional people. Their goals are a mix of
gracious living and the pursuit of success.
3. Upper-Middle. This 10 percent of the population comprises suc¬
cessful managers and professionals, plus those younger people in
these fields who anticipate such success by dint of upbringing or
education. Career success tastefully reflected at home is the common
goal. For most advertising purposes, Coleman says, the three
uppermost classes can be viewed as a single category.
4. Lower-Middle. This third of the public are white-collar workers,
small businessmen, and some high-status blue-collar families. Re¬
spectability is a goal in their home, clothes, and neighborhood;
striving characterizes their orientation to work and to a good edu¬
cation for their children.
5. Upper-Lower. This 40 percent of our people is the other part of
the "average man’s world” along with the lower-middle class,
comprising largely semiskilled workers. This group, even when
earning good money, is less concerned with respectability and more
with enjoying life. They do want comfortable living, away from
the bad part of town, but middle-class views are not theirs.
6. Lower-Lower. The remaining 15 percent constitutes the unskilled
and underemployed. Their very modest purchasing power has not
been of much interest to marketers.5

4 Pierre Martineau, "Social Classes and Spending Behavior,” Journal of Marketing,

23 (October 1958), 122-23.
5 Richard Coleman, "The Significance of Social Stratification in Selling,” in
Marketing: A Mature Discipline, ed. Martin Bell. Proceedings of the American Marketing
Association Conference, Chicago, 1961, pp. 17Iff.
 Social-class analysis is important, since advertising that seems to be 293
The
oriented to upper-class Americans may turn off those in the middle majority Behavioral
(lower-middle and upper-lower) groups, and vice versa. Sciences in
Werbung
An interesting example of social analysis was reported by Jay M.
Kholos, whose agency handled the advertising of an independent clothier
with but one store and no street traffic. The trade was a lower-middle-class
market, "where the purchase of a suit is usually a special occasion.” "In se¬
lecting television spots for this client,” he reports, "the best audiences are the
fans of the roller derby (not baseball). Spots in such programs are fitted to
the audience.” And there you. have a class distinction between roller derby
fans and baseball fans! 6

Innovators. There are people who like to be among the first to try
new products and services. They represent a good source of sales at the critical
early stage of a product’s existence. In addition, many of them, but not all,
may help to spread the word about the product. Every advertiser of a new
product would like to identify and reach such people.
Extensive research has been done on the ways people learn about
new products and accept them. Rogers divided them into five groups, differing
in the point of time at which they accepted a product.

1. Innovators (2.5%). These people are highly venturesome and are

cosmopolitan-oriented; they are eager to try new ideas, and are
willing to accept the risk of an occasional bad experience with a
new product.
2. Early Adopters (13.5%). These people, more than the innovators,
are those in the community with whom the average man or woman
checks out an innovation; a successful and careful innovator, the
early adopter is more influential with those who follow.
3. Early Majority (34%). This group tends to deliberate before
adopting a product; they are seldom leaders but are important in
legitimatizing an innovation.
4. Late Majority (34%). This cautious group adopts ideas after most
people, when the bulk of public opinion is already in favor of an
innovation.
5. Laggards (16%). These past-oriented people are suspicious of
change and those who bring it; by the time they adopt a product,
it may already have been replaced by yet another.7

It is helpful to try to understand the nature of those who are among

early buyers. Among their personal characteristics are venturesomeness, cos-

6 Jay M. Kholos, president, Jay M. Kholos Advertising, Encino, Calif., in Broad¬

casting, August 28, 1972, p. 11.
7 Everett Rogers, Diffusion of Innovations (New York: The Free Press, 1962), pp.
168-71. The percentages are based on the statisticians’ "normal” distribution.
 294 mopolitanism, social integration within the community, financial well-being,
Creating
and self-confidence in problem solving.8
the
Advertising Advertising appeals to the innovator to be the first in his group to
have a particular product. This is typified by urging a consumer to "be the
first on your block" to own a particular new product. Fleischmann’s Yeast
personalized the attraction:

Make your husband glad he’s yours. Be the only wife on your block
to make a beautiful whole wheat bread loaf. . . . Let him brag
about you.

The same kind of advertising approach is used for much more expensive
products: American Airlines’ advertisement for its four-week Pacific Islands
tour ($1,185 plus air fare) called the consumer’s attention to "the last great
area to explore. Before everybody else does."

Influential. Not every early buyer of a new product is in turn looked

to by others as a reliable source of new-product ideas. But those particular
people whose ideas and behavior do serve as models to others are of special
interest to advertisers. These opinion leaders, or influential, can speed the pace
of new product sales by their own purchases and discussion of them. Despite
efforts to pinpoint these "generalized opinion leaders,” it seems that different
people serve as sources of product information and use in different fields. The
doctor who is influential with colleagues in adopting new drugs may not lead
in consumer-goods adoption. Housewives who are fashion influentials may
not be food-product influentials.9
The spread of new-product information from influentials to others is
principally through word of mouth. Advertisers naturally try to stimulate
favorable word-of-mouth comment, sometimes using direct appeals along
this line. For example, Peugeot’s 1972 ad campaign was built around a word-
of-mouth network, with the theme, "One Peugeot owner leads to another.”
The ads stated that the buyer had learned about the car from a friend who
owned one, and showed him in turn telling his friends about it.
One of the most traditional uses of the opinion leader in advertising
has been in the use of testimonials—using status figures or experts in a field
to endorse products, such as movie stars endorsing cosmetics and star athletes
endorsing breakfast cereals.
An ad may seek status for the product through association of products
to the establishments that use them. Advertisements for Sweet ’N Low low-
calorie sugar substitute devoted half its space to asking consumers, "What do

8 Lyman C. Ostlund, "Identifying Early Buyers,’’ journal of Advertising Research,

April 1972, pp. 25ff.
9 Elihu Katz and Paul Lazarsfeld, Personal Influence (New York: The Free Press,
1955).
you have in common with . . a number of airlines and major hotels. (The 295
The
answer: the use of Sweet ’N Low.) Similarly, ads for Open Pit prepared Behavioral
barbecue sauce featured "Edgar Herrmann, chef at a leading Chicago hotel Sciences in
Werbung
to tell housewives why a chef who could make his own great barbecue sauce
used Open Pit.
Sometimes the "expert” is just an ordinary citizen, but with a relevant
background for the product. Television commercials for Ragu spaghetti sauce
featured a man who characterized himself as Italian and not famous . . .
"but I do know spaghetti sauce, and Ragu is the best.” A Volkswagen com¬
mercial asked—and showed—-"How does the man who drives the snowplow
* ■»

get to the snowplow?” (All testimonials fall under the Federal Trade Com¬
mission rulings, as described in our legal chapter later in the book.)

Reducing risk in purchasing. Spending money always involves some

risk. The first question one asks himself about a product is, "Is it worth it?
Beyond this, two distinctive kinds of risk have been identified in consumer
purchasing. One is summarized by the question, "Will the product work?’
The other has to do with "Does the product fit with me?” Bauer calls these
performance risk and psychosocial risk, respectively.10
Testimonials are only one of the ways advertisers try to reduce the
amount of risk a consumer may feel he is taking in buying a particular product.
They often try to reduce psychosocial risk by showing the product and people
using it in situations with which prospective consumers can identify themselves.
The so-called slice-of-life commercials, which show "ordinary people” using
a product in realistic situations, reflect this. Thus it is not surprising that an
important reason consumers consider certain ads informative and others en¬
joyable is that the ad made them "feel in the situation.”10
Advertisers try to reduce performance risk in several ways. One is to
show the product in use and the happy results of that use. Another is the
statement of the money-back guarantee. Usually this is in the form of a money
refunded if you are not satisfied” pledge—or sometimes double your money
back.
Even after a person has bought a product, he often asks himself, Did
I make the right decision?” This kind of post-purchase anxiety is particularly
likely in the case of major-product purchases, such as a car. One role that ad¬
vertising can play in such situations is to reassure the consumer by providing
information supporting the decision, and hence reduce the anxiety. This may
explain why recent purchasers of a high-price product are often among the
more avid readers of its ads. It may also explain why consumers in fact con¬
sider, ads for brands they prefer and for products they use to be far more

10 Raymond A. Bauer, "Consumer Behavior as Risk-Taking,’’ in Dynamic Marketing

for a Changing World, ed. R. S. Hancock (Chicago: American Marketing Assn., I960), pp.
389-398.
 296 informative and enjoyable than those for products they don’t use or brands
Creating
they don’t prefer.11
the
Advertising When a person receives new information that is contrary to his pres¬
ent belief or behavior, there is a conflict. Most people try to reduce this kind
of inconsistency either by modifying their beliefs or behavior, or by rejecting
the new information. For example, faced with a report that artificial sweet¬
eners may be dangerous, a person using them may pooh-pooh the report, or
he may stop or reduce his use of the product.
Both these reactions are explained by what behavioral researchers call
dissonance theory, which explores how we psvchologically attempt to maintain
or restore consistency in our beliefs,jjaxLactioji§.12 When an advertiser seeks to
reassure buyers through the advertising message, or when he employs a repeti¬
tive advertising schedule to aim his ads at present users, he is making use of
these ideas about consumer behavior.

Psychology and Advertising

One of the most effective tire advertisements in recent times showed a woman
on a lonely road gazing forlornly at the flat tire on her car. "When there’s
no man around, Goodyear should be,” said the caption of the advertisement,
which went on to say:

She’ll never have to change tires with Goodyear Lifeguard Safety

Spare. Stranded. Helpless. Alone. You’d help her if you were there—
but you’re not. . . .

A psychologist could explain why the advertisement did so well. First, there
was a sense of s'elf-identification by women readers with the woman in the
advertisement; a woman could easily picture herself in such a predicament.
Second, there was a clear understanding of the woman’s feelings and motiva¬
tion—the desire to avoid danger. A man reading the advertisement could
see his wife or daughter in that predicament, so that he, too, is compelled to
identify with it. It makes him aware of his responsibility toward them; he is
motivated by his desire to protect those he loves. These interpretations repre¬
sent insights that advertising has gained from psychology. In fact, the language
of psychology has become a part of the advertising man’s vocabulary—-self-
identification and motivation, status symbol, ego-involvement, self-image,
appeals.

11 Raymond A. Bauer and Stephen A. Greyser, Advertising in America: The Con¬

sumer View (Cambridge, Mass: Harvard Business School Division of Research, 1968),
Chap. 7.
12 Leon Festinger, "Cognitive Dissonance," Scientific American (October 1962),
p. 93.
 The nature of motivation. Psychology is the branch of the behavioral 297
The
sciences that is particularly interested in motivation—what makes a person act Behavioral
as he does. Motivation represents all the inner strivings variously described as Sciences in
Werbung
wishes, desires, needs, urge, and all the drives that initiate the series of events
known as "behavior.” Just what are these drives? The question is enormously
complicated. Students of clinical psychology have compiled many different
lists of drives. One classification speaks of physiological motives and secondary
or social motives—physiological motives referring to those whose satisfaction
is essential to survival, as hunger, thirst, mating, while the secondary or social
motives are those not involved in this function, as the desire to be socially
accepted, to win a tournament, to get a promotion. Another lists motives in
terms of 28 attitudes, including the acquisitive attitude (to gain possession of y
property), conserving attitude (to protect against damage), constructive atti- |
tude (to organize and build), achievement attitude (to overcome obstacles), J
recognition attitude (to excite praise and commendation), and dominativtf
\ attitude (to influence or control others).
Bayton describes motives in terms of man’s needs, grouped as follows:

1. Affectional needs—the needs to form and maintain warm, har¬

monious, and emotionally satisfying relations with others
2. Ego-bolstering needs—the needs to enhance or promote the per¬
sonality; to achieve; to gain prestige and recognition; to satisfy
the ego through domination of others
3. Ego-defensive needs—-the needs to protect the personality; to
avoid physicaTand psychological harm; to avoid ridicule and "loss
of face”; to prevent loss of prestige; to avoid or to obtain relief
from anxiety 13

Other lists, according to Berelson and Steiner,14 contain as many as 60 separate

motives.
No single set of classifications has been recognized as a standard in
the field. At all times, man is crying (even though the world does not often
hear him), "Please understand me!” The advertising man needs to under¬
stand the buyer, not merely the product; to have insight and empathy with
his goals, his wishes, his desires, his drives, his problems. Highway signs warn¬
ing drivers that it is "unsafe to pass” are likely to have more impact than do
warning that it is "illegal to pass.” "No headache seems small when it’s
yours” was Bufferin’s way of recognizing this fact.

Differences in motivation. The reason a man says he buys a certain

product may have nothing to do with his real reason for buying it. If asked

13 James A. Bayton, "Motivation, Cognition, Learning—Basic Factors in Consumer

Behavior," Journal of Marketing, 22, 3 (January 1958), 289.
14 Bernard Berelson and Gary A. Steiner, Human Behavior (New York: Harcourt
Brace Jovanovich, Inc., 1964), Chap. 14.
 Sex appeal,, so labeled by psychologists,
is effectively used in this advertisement
for an end-product advertiser.

You can actually

be rediscovered by the
man in your life simply
by changing your
mode of dress m m
Dr. Joyce Brothers, w /
Nationally known psychologist

Judy Gibbs styled

this suit for the woman who
loves being rediscovered by the man
who matters. The multi-colored stripes with
black accent will open
his eyes with a click. Made of
easy-care 100% Trevira® polyester
knit. Sizes 3 to 15.
Wear it, and he'll act
like he met you yesterday.
About (48 at Abraham & Straus, all storos;
Jacobson's, Michigan; Jordan Marsh, Boston.

Trevira’
makes it easy
Hoechst Fibers Incorporated, 4S5 Lexington Avenue. N.V. 10017, Licensee ol the Internationally Registered TV
for the reason he made a specific purchase, he will give an explanation that 299
The
will make him sound like a thoughtful, rational man. The real reason may be Behavioral
different. A middle-aged man will say he bought a car because he likes its Sciences in
Advertising
looks; the real reason may be that he likes the youthful way it makes him look.
A woman will buy a dress because, she says, she needs it; perhaps she really
bought it because she felt she needed a "lift.” A man may say he does not
like tea because of the taste; his real reason may be that he regards it as a
"sissy” drink.
A product may mean different things to different people. Take the
matter of a shampoo for men. Dichter reports that there are three major atti¬
tudes of men toward shampoos. First, there are men who might be described
as masculine rebels. Shampoo has such feminine associations for these men
that they will not use it; they wash their hair with bar soap. Second, there are
the resentful conformists. Such a man washes his hair with whatever brand
of shampoo his wife uses, but he feels vaguely—or in some cases, acutely—
uncomfortable about it. Third, there are the secure males. By and large, their
selection of a shampoo is determined on the basis of practical considerations
rather than psychological needs. "They are likely to use whatever is handy, as
long as it will do the job quickly and thoroughly.” 15
Tietjen cites examples of the extremes in the beneath-the-surface atti¬
tudes of different people toward the same product: 16

Housecleaning Products
“Involved Housekeeper” “Functional Housekeeper”

Buys products to help her—she is Buys products to do the work for her
doing the cleaning and enjoys it. —she seeks the quick and easy way
to do the job.

Foods
“Devoted Cook” “Casual Cook”

Likes to be in kitchen—enjoys cook- Likes to spend time with family in

ing as a means of self-expression. other ways—cooking represents a
chore.

Home Improvement Products

“Owner” “Dweller”

Buys house for long-range habitation Buys a house for short-term use—
and is constantly changing and im- makes few, if any, improvements,
proving it. moves on when family increases or
decreases.

15 Ernest Dichter, Handbook of Consumer Motivations (New York: McGraw-Hill

Book Company, 1964), p. 183. Used by permission.
16 Karl H. Tietjen, "New Directions for New Product R&D,” Printers’ Ink,
February 12, 1965, p. 14.
 300 Self-images and roles. Our motivations are closely related to how
Creating we see ourselves—our self-images and the different roles we play. Products
the
Advertising are one of the ways we tell the world how we would like to have it think of
us. In this way, products serve as symbols of who and what we think we are.
A Drexel furniture advertisement dwells on the symbolic significance that
furniture may have, by saying, "In subtle ways it can speak volumes about
you and your taste . . . reflect who you are and where you are going.”
Sometimes the advertising for a product needs to be changed to help
change the consumer’s view of himself or herself. For example, psychological
research showed the importance of such self-images in the early days of in¬
stant coffee. Researchers showed housewives comparable shopping lists, differ¬
ing only in listing instant coffee and regular coffee, and asked for descriptions
of the kinds of women whose lists they were. The findings showed that
housewives saw'the image of the woman who used instant products as that of
a lazy homemaker.17
What was done? The copy was repositioned from an emphasis on
ease and time-saving alone, toward the benefits of using that time. More
broadly, in the product formulation of some products, work for the housewife
was "left in” as part of the product-usage process. For example, cake mixes
called for the housewife to add eggs to the mix, so that she would have more
feelings of participating in the making of the cake.
All of us have a number of roles—even at the same time. Thus, the
same 2 5-year-old man is a husband, a father, and a son. In each of these roles,
he may be addressed by advertising for different products—insurance for the
family, labor-saving appliances for his wife and the home, gifts for his
parents.

Consumer Life-styles

Each of the behavioral sciences we have touched upon has its own contribu¬
tions to offer. They can also work in combination, as is the case in the study of
"consumer life-styles.” Life-style is the term for the "distinctive or character¬
istic mode of living ... of a whole society or segment thereof.” 18 Adver¬
tisers are interested in life-styles as they reflect the ways individuals see them¬
selves and their living patterns. Life-style research is very much linked to social
trends, and how people fit themselves into them. The future of virtually any
consumer product is affected by one or more of these trends. They can also
affect the direction and tone of advertising.

17 Mason Haire, "Projective Techniques in Marketing Research,’’ Journal of Market¬

ing, April 1950, pp. 649ff.
18 William Lazer, "Life Style Concepts and Marketing,” in Toward Scientific Market¬
ing, ed. Stephen A. Greyser. Proceedings of the American Marketing Association Conference,
Winter 1963, Chicago, 1964, p. 130.
 Daniel Yankelovich has extensively studied American life-styles and 301
The
has identified 31 social trends that he believes can change the overall patterns Behavioral
of American life and of buying behavior.19 These are not pushing in a single Sciences in
Werbung
direction, and do not affect all people. They have been categorized into five
major groupings:

1. Trends that are effects of the psychology of affluence, particularly

felt among consumers who seek fulfillment beyond economic se¬
curity. Included are trends toward personalization (expression of
one’s individuality through products), new forms of materialism
(deemphasis on money and possessions), and more meaningful
work (work satisfactions aside from money).
2. Trends that reflect a quest for excitement and meaning beyond the
routines of daily life. Included are trends to novelty (constant
search for change), to sensuousness (emphasis on touching and
feeling), and to mysticism (new spiritual experience).
3. Trends that are reactions against the complexities of modern life.
Included are trends toward life simplification, toward return to
nature (rejection of artificial and chemical in dress and foods),
toward stronger ethnic identification (new identification in one’s
background), and away from bigness.
4. Trends that reflect new values pushing out traditional ones. In¬
cluded are trends toward pleasure for its own sake and living for
today, toward blurring of the sexes (and their roles), and toward
more liberal sexual attitudes.
5. Trends reflecting the personal orientations of those now in their
teens and twenties. Included are trends toward tolerance of dis¬
order (such as against fixed plans and schedules, affecting shopping
and eating habits), toward rejection of hypocrisy (affecting atti¬
tudes toward exaggeration in communication), and toward female
careers (away from traditional home-and-marriage as sufficient
for women).

Effects of life-style trends. To reflect these changing trends and

values, and their effect on marketing and advertising, Yankelovich offers
three vignettes:

An older married couple whose children are grown move from their
big home to a smaller, brand-new apartment. With fewer home re¬
pairs, with more labor-saving appliances, they have more time and
money for leisure pursuits. Their efforts at "life simplification’’ are
- relevant to marketers of such products as home appliances, prepared
and frozen foods, and travel.

19 "What New Life Styles Mean to Market Planners,” Marketing/Communications,

June 1971, pp. 38ff.
 He lives with his parents and I live
with mine. And so to be alone to talk, to
dream, to scheme, we take aimless drives to
no place special.

Then he said “isn’t it time we stopped

driving nowhere and started our lives going
somewhere.”
The Traditional
And I said yes.
Life-style

Photographed for Dc Beers Consolidated Mines. Ltd. by Peter Vaeth.

A diamond is forever.

An unmarried secretary has reacted to the "return to nature trend

by going bra-less when not at work. She has also changed her hair¬
style, lipstick, and perfume, and she buys some of her food at a small
natural food store. She and those like her are of relevance to marketers
of foundation garments, clothing, and cosmetics.
A young professional, about 30 and married with two children,
wonders about how meaningful his job really is, how important the
traditional home-family-job "ratrace" is. With longer hair and side¬
burns, he has experimented with marijuana, bought new stereo equip¬
ment, traded in his American sedan for a more functional foreign car,
and is an avid reader of publications that tell about how people are
changing their lives. His attempt to "personalize" his life and to seek

302
 For only $ 168*a week'you Everything but the bar and A bank president and bank
can lay aside the things that boutique is absolutely free; teller, without the usual wail of
clutter your life You re at Club The sailing, tennis, scuba div¬ pinstripe between them, make
M editerr a nee/M art i n i q u e. ing, picnics, water siding, yoga, real contact. Human being to
Friendships form quickly. Last snorkelsng spearfishing, danc¬ human being.
names, job titles and related ing, three French meals every Sometimes, one of the most
trivia couldn’t matter less day, and the free-flowing wine fascinating people you meet
You live all day in a bathing with lunch and dinner. here is someone you’ve been
The suit. At night, you need only Best of all. the whole atmos¬ too busy to get in touch with at
wear a bit of super-casual phere is free, and the people home.
"Live Today’’ are free with each other, Yourself.
finery-Ties and jackets, never r'sl. Air fare not tncmded.
Life-style %■ U5B i-Q a depending on season tsughfiy higher Cttfigmt*«ngNew >

Here we do not impress each other

with our money, our status or our clothes.

We impress each other with each other.

"pleasure for its own sake/’ is of relevance to marketers of such

products as expensive liquor, music equipment, and cars.

Multiple directions. Obviously, these trends are not all moving in

the same direction. And further, many Americans are not caught up in pat¬
terns of change at all. Wells’ research on a broad sample of married middle-
class Americans shows that this "large segment of U.S. society portrays itself
as happy, home-loving, clean, and square.” More specifically, "mod youth
have not had much impact on the central values of the average man. . . . For
most Americans it is indeed a Wyeth, not a Warhol, world.” 20

20 William D. Wells, "It’s a Wyeth, Not a Warhol, World,” Harvard Business

Review, January-February 1970, p. 26.

303
 304 Dramatically different life-styles are reflected in the two accompanying
Creating advertisements appealing to young, single people. One (the De Beers diamond
the
Advertising ad) is still oriented to the traditional pattern of finding the ideal mate and a
happy marriage. Although the couple is pictured with the hairstyles and
rather informal attire of the seventies, the text evokes the traditional life pat¬
tern: "He lives with his parents and I live with mine. And so to be alone to
talk, to dream, to scheme, we take aimless drives to no place special. Then
he said 'isn’t it time we stopped driving nowhere and started our lives going
somewhere.’ And I said, yes.
How different an orientation to life from the advertisement in be¬
half of Club Mediterranee, a vacation resort emphasizing an informal, anti¬
status, manner of living. "Last names, job titles and related trivia couldn t
matter less. . . . Ties and jackets, never . . . the whole atmosphere is free,
and the people are free with each other ... We impress each other with
each other.’’
The difference between the two ads is not mere advertising technique;
it is in the life-styles pictured.

Views vs. facts in consumer trends. Although advertisers are greatly

concerned with changes and trends in consumer behavior, overconcentration
on change may obscure some realities of that behavior. Grey Matter listed a
number of widely held views about markets and changing consumer trends
along with the corollary facts. Among them:

"Flying is a way of life.’’

—Only 17% of the U.S. population took an airplane trip in 1971.
—Only 16% of adults had traveled outside the U.S. in the 1965-70
period.
"America is living on credit.’’
—Only 8% have one of the three major national credit cards.
—Only 24% have bank credit cards.
"Hardly anyone prepares food from scratch.’’
—Only 10% of eating occasions were at a restaurant in 1970, in¬
cluding working people’s lunches out.
—Three-quarters of vegetables are bought fresh.
—82% of housewives bake cookies and cake from scratch in the
course of a year.21

These items were cited not to suggest that changes are unimportant.
Rather, to point to the importance of watching change.

21 Grey Matter, published by Grey Advertising Agency, New York, June 1972.
Models of Consumer Behavior 305
The
Behavioral
Those who have studied how the human mind works in making buying de¬ Sciences in
Advertising
cisions have long sought to identify a single predominant factor that explains
buying behavior. So far, however, no one pattern has been found that can be
applied to all—or even most—buying situations. But many of these schools
of thought have ideas to contribute to our understanding of the workings of
the consumer mind as it "processes” ideas and information about products
in the course of making buying decisions. These approaches to how the con¬
sumer’s mind works are often called "models” of consumer behavior. Kotler
has conveniently classified them into the following five categories: 22

1. Marshall’s economic model portrays man as responding chiefly to

economic cues, with emphasis on careful, rational deliberation of costs and
available income in making all buying decisions. From the advertiser’s per¬
spective, emphasis in this model on so-called "rational” choices is overdone,
especially for most low-cost products. Experience shows that most people buy
some products for many other reasons than price alone. But there are some
applications of it, especially in advertising reduced prices and in understanding
what competitive products might be seen as substitutes for the advertiser’s.

2. Pavlov’s learning model is described by Kotler as portraying man

as a creature of habit more than of careful consideration of each action. Par¬
ticular cues and past experiences prompt consumer reactions. From the adver¬
tiser’s perspective, this helps explain why a person may form a habit of always
buying the same one or several brands in a product category (called "brand
loyalty”), or of always buying the lowest-price brand. For example, in a par¬
ticular product category where existing loyalties are strongly entrenched, a
new entrant or brand with a low market share would have to break through
a much tougher barrier of habit, even to get consumers to try the brand. This
might call for dramatic changes in the pricing or presentation of the product.

3. Freud’s psychoanalytic model is characterized by Kotler as por¬

traying man’s choices as influenced by deeply buried motives, many of which
are sexually related. These motivations are difficult to understand, even by
the individual himself. In Kotler’s view, the most important marketing impli¬
cation of the Freudian model is its emphasis on the symbolism of products-—-
for example, that convertible cars serve men as a substitute mistress. Another
major outgrowth from this model has been extensive consumer research seek¬
ing to probe into the subconscious—"motivational research.” Such research
can provide useful ideas for advertisers, especially by linking products to

22 Philip Kotler, "Behavioral Models for Analyzing Buyers,” Journal of Marketing,

October 1965, pp. 37ff.
 306 consumers’ hopes and ambitions for themselves, such as feeling more mascu¬
Creating line through smoking strong cigars.
the
Advertising 4. Veblen’s social-psychological model portrays man’s behavior as
very much linked to his group associations. This kind of emphasis on social
influences on our behavior has resulted in extensive research into our group
memberships by sociologists and cultural anthropologists. We have already
explored some of this research and its implication for advertisers. At this
point, it is useful to review what two major kinds of group associations are
involved. Of these, one kind is jace-to-jace groups, such as families, neigh¬
bors, working colleagues, and friends. The ^<9^-face-to-face associations in
elude cultural and subcultural groups (national, regional, ethnic, and religious
identifications), social class (identification in terms of economic circumstances,
background, and occupation), and reference groups (those whose activities or
roles in society people identify with or want to imitate). Any of these group
identifications, depending on the particular product or advertising circum¬
stances, can have an impact on a particular consumer’s behavior.

5. An organizational-buying model tries to describe how people make

their decisions when they are buying for business purposes; for example, a
purchasing agent in an industrial plant. This kind of buying differs from that
done for personal consumption. In organizational-buying situations, the model
tries to reflect the buyer’s concerns with the organization’s goals—such as
low price and good service—and with his personal goals—such as enhancing
his reputation as a good buyer, and getting along with others in the organiza¬
tion. For us, it is important to recognize that not all organizational-buying
decisions are exclusively "rational’’ on behalf of company interests; these
purchases can also be affected by the buyer’s personal motives, as recent re¬
search has confirmed.23

Understanding People—
a Continuing Study for Advertising

All advertising seeks to influence people’s behavior. Sometimes the goal is

simply to reinforce a consumer’s existing patterns, such as the repurchase of
his present brand of a frequently bought product. Sometimes the goal is to
modify a consumer’s behavior, such as getting him to switch brands or to
replace an older model of a product with a newer one. Sometimes, especially
in the case of truly new products, it can be to change a behavior pattern to
convince someone to substitute a new way of doing something for an old one.
All this points up one of the most important elements of effective
advertising—understanding people.

23 Wallace Feldman and Richard Cardozo, "Industrial Buying as Consumer Be¬

havior,” in Marketing for Tomorrow . . . Today, eds. M. S. Moyer and R. G. Vosburgh.
Proceedings of the American Marketing Association Summer 1967 Conference, Chicago, 1967,
pp. 102ff.
 307
The
Behavioral
Sciences in
Werbung
Consumer Attitudes Toward Beer
and Beer Advertising
A case report illustrating
the use of a behavioral-sciences concept
in beer advertising

The study 24 was undertaken to determine the real underlying attitudes

and motives people have toward beer, to determine any differences in these
attitudes by social-class levels, and to measure the impact of typical beer ad¬
vertising on these different classes. Why do people drink beer? When? With
whom? What advertising can cause them to switch brands?

Method

The findings in the study were based on over 350 psychological depth inter¬
views with men and women of all social classes. The research question was
basically, "Why do people do this?” rather than, "How many do this?”
Typical quotations revealing fundamental attitudes toward beer and beer ad¬
vertising are cited in the report summary.

Social Class

This study accepts the concepts of social class in America developed by Dr.
Lloyd Warner, based on studies of typical American communities. Social
classes are not economic classes. Social status is determined by education, fam¬
ily background, type of occupation, type of home, and neighborhood, not just
amount of income.
The two major social-class groupings important to the advertiser are
the Upper-Middle and Upper classes (15% of the population—the quality
market), and the Middle Majority (65% of the population—the mass
market)....
With most products, the upper middles react most positively to adver¬
tising that caters to their higher-status positions in society—which indicates
through sophisticated language, prestige objects, and well-to-do settings that
the advertiser feels that those who appreciate the finer things of life will use
his product. In terms of copy and layout, they prefer ads that are reserved, do

24 Material is based on a study for the Chicago Tribune by Social Research, Inc.
Courtesy Social Research, Inc.
 308 not make extravagant claims, and are often playful in their treatment of the
Creating
product.
the
Advertising The middle majority, on the other hand, often react quite negatively
to advertising that appeals to the upper middles. They feel that such adver¬
tising is too high-flown, and they prefer advertising that is realistic in terms
of settings and people, that sticks to practical details. They react most posi¬
tively to advertising catering to their needs and interests, giving them informa¬
tion of use, and showing respect for the common man.
There is no real proof that middle-majority families fall all over
themselves to imitate high society. Some scientists have said that the greatest
single motivation for an American is fear of being different from his own
class.
By far the largest group of beer drinkers is in the middle majority,
and the middle majority consumes the largest amount of beer per capita as
well.

Highlights

Up and down the social ladder, we find beer a ivell-liked drink. People have
clear attitudes toward beer and its uses. They know what they want from beer;
they get basic social and psychological satisfactions in drinking it.

When Do People Drink Beer?

Beer is a congenial drink. It oils the wheels to make a social gathering

enjoyable, relaxing, and refreshing; it breaks down social barriers and lets
people be democratic. ("A good drink for a get-together.”) "After a couple
of drinks of beer, you feel like talking more.”)
Solitary beer drinking is meaningful too. Men drink it as an adjunct
to other activities—puttering, reading, watching TV, working. Fewer women
drink alone, but some find beer enjoyable while they are doing housework or
for a break in the day’s routine.

When Is Beer an Appropriate Social Drink?

Beer fits best where equalitarian relaxing is in order. People drink

beer in all social classes and for similar reasons. Beer is considered to mark
the absence of authority; it is an invitation to informality. Most drinking is
done to be socially proper. What is appropriate differs from class to class.
In the upper middle class (the UMC): People often speak, act, and
dress to mark themselves off from the way of life of the middle majority. In
drinking habits, the mark of UMC status is the mixed drink or the fine wine,
not beer. Only when the UMC person is emphasizing his commonality with
others does he drink beer to show that he is a good fellow. When he wants to
emphasize his membership in a higher-status group, as is more often the case,
he drinks something else.
 In the middle majority (MM): There are fewer occasions when people 309
The
wish to be formal, to "put on the dog." Most MM people take their "in- Behavioral
between" status for granted and have few needs to appear classier. They con¬ Sciences in
Werbung
sider beer the drink of the Common Man. They insist that when those above
them drink beer, they are bringing themselves down to the "like-me” level.
Only on formal occasions (few in middle-majority society) do they bring
out the high-status mixed drinks or wine. Cost also makes beer the drink of
the middle majority.

Guides to Beer Drinking

Middle-majority members often express hostility at the suggestion

in beer advertising that they should be guided by the upper classes. (Said a
28-year-old clerk: "Those man of distinction’ ads make me mad. My money
will buy just as good liquor as anybody else’s.") This feeling manifests itself
toward testimonials too. While snob appeal is effective for some prestige items
recognized as such, beer is not a prestige item.

What Makes Beer a Good Drink?

At the most universal level, the pleasure of beer drinking lies in

the throat. Words used to describe beer are more descriptive of how it feels
than how it tastes—e.g., "smooth."
Beer is disliked when the flavor interferes with the feel. Beers are
disliked because they taste bitter, sour, biting, or when they are watery and
without texture.
Beer is just alcoholic enough to give the drinker a feeling of relaxa¬
tion and lack of inhibitions. In socializing, this enables him to feel more at
home and more willing to be spontaneous. At the same time, there is little
likelihood of losing control completely. Middle-majority people, especially,
are attracted to this quality; they fear drunkenness but need something to make
them relax in social situations. ("I can drink beer for hours on end and still
not overdo it.”)
A thirst quencher. There is almost complete agreement that beer is
a good cooling drink, noticeably more thirst-satisfying than whisky or wine.

How Do People Feel About Brands?

Bor most people, there is "my brand," "the brand that let me down,"
and "all those others." And people describe their favorite beer(s) with all the
good words advertisers have taught them to apply to what a beer should be.
With bad words, they describe the beer that let them down—e.g., the beer
they were drinking "that time the party was no fun." People usually know
three or four good and bad beers; all the rest are just beers. Beer drinkers
generally stick to a brand for an extended period; few people will drink any
kind.
 310 Generally speaking, many people feel that nationally advertised brands
Creating are more trustworthy than brands with less advertising or less extensive dis¬
the
Advertising tribution. A large majority of the people do not believe beers from one city
are better than those from another. ("Just because it’s from Milwaukee doesn t
make it a good beer.’’) Most people are quite willing to accept a less well-
known beer once they’ve tasted it.
The consumer rationalizes his reasons for preferring a brand. There
is no general consumer agreement as to the meaning of terms used to describe
beer. The terms used to justify brand preferences are actually the emotional
symbols expressing pleasure in beer drinking. The same positive admiring
characteristics are applied to different beers that middle-majority people like,
and common negative descriptions are applied to those they do not like.

What Are the Common Appeals in Beer Advertising?

Most beer advertisers don’t make use of favorable attitudes toward

beer. In place of advertising that harnesses these attitudes most successfully,
much beer advertising falls into these main categories:
The prestige endorser theme—perhaps the most popular theme
among beer advertisers. This approach seeks to influence the beer drinker
through endorsements by some prominent persons. There are at least three
disadvantages:

—People do not believe it; they believe the endorsers are ' insincere.
—The situation is usually impersonal; it has few connotations of a
friendly relation.
—Many of the figures chosen are not meaningful to the audience,
such as theater stars only vaguely known to the middle majority,
or sports stars who people believe should not endorse beer be¬
cause they’re in training and heroes to the young. ( Those big
shots don’t drink beer; you can’t kid me.’’)

The high-class theme—in advertising communicates to the audience

by dress, setting, and tone of copy that beer is a "high-class” drink. To the
MM (and even the UMC) people, this idea is distinctly inappropriate. For
them, beer is a universal drink, not the formal beverage of the wealthy or
prominent. Typical reactions of ordinary beer drinkers indicated disbelief of
and resentment toward this theme. (A 21-year-old Italian laborer said, Looks
like they might be drinking highballs instead, in a real ritzy place.”)
The scientific-proof theme—emphasizes technical phrases, informa¬
tion to prove tnat one brand of beer is better than others. People do not use
technical reasons for their beer preferences. Most beer drinkers judge beer
more by the satisfaction they get from it—simply by using it—and have little
interest in technical information. (A 52-year-old housewife commented, "I
don’t care how beer is made as long as it tastes good.”) Also, this theme is
essentially impersonal and does not have the attention-holding power of ads 311
The
that tie in with the social and personal meanings of beer. The scientific theme Behavioral
has reassurance value but is not a good attentiongetter as a major ad appeal. Sciences in
Werbung
The average-man theme—is not widely used, but where it is, it re¬
ceives a good deal of favorable attention from the audience. Such ads emphasize
people who look "average” or slightly better in dress and surrounding and
who are doing things middle-majority people commonly do or want to do.
People feel that such ads "fit” with beer and the meanings it has for them.
The ad is much more likely to arouse interest and a desire to have a beer. ("I
get relaxed just looking at this—because I feel that way myself with a glass
of beer in my hand, nice and relaxed.”)

Appeals that Elicit Response

Appeals recalling, suggesting, and demonstrating pleasure are those

to which people respond most. Beer is bound up with social and personal feel¬
ings—what it is used for, what pleasure it can give.

We Recommend that Advertising:

Should be directed primarily at the middle majority, since this is

the mass market and the market in which more beer is consumed per capita.
Should take into account that men are probably the major market in
terms of both consumption and brand selection, but that women are im¬
portant and apparently increasing in importance.
Should embody and emphasize:

—Family and friends in informal gatherings

—Relaxation and refreshment after work or exercise
—Refreshment of spectators at appropriate sports gatherings
—Equalitarian festivities such as lodge meetings and Fourth of July
—Beer with meals

Should use these kinds of people:

—Hearty, active men of middle majority and upper-middle class in
informal clothing
—"All-American girls,” with emphasis on wholesomeness, not sexi¬
ness

Should talk about beer as:

—A cool, refreshing drink
—A friendly, hospitable drink
—A drink for equals, "for people like you”
—A drink that feels good
—A drink consistent in quality, clean, and carefully made
 Do’s and Dont’s of Beer Ads

People should be:

—Either man or woman at middle-majority level
—Interesting to middle majority
—Someone who represents activity, "he-man” achievement, spectacu¬
lar or romantic work

People should not be:

—Intellectuals or artists
—Businessmen with a formal "man of distinction” manner
—Merely sexy or glamorous

Settings should be:

—Casual and informal
—Nice, clean but modest. Not a Hollywood version of an upper-
class home, party, or table setting
—Believable in terms of the kinds of people shown and the kinds of
occasions at which beer is served

Settings should not be:

—Loaded with high-status symbols in location, furnishings, or ac¬
tivities
—Unbelievable in terms of either people or serving beer
—Extremely stiff or formal

Review Questions

> How does the anthropologist view

man’s behavior? How is this view¬
point applicable to advertising?
Cite an example from current ad¬
point applicable to advertising? Cite vertising.
an example from current advertis¬ 6. Explain the differences a) between
ing. physiological and social motives, and
2. Find and discuss an example of cur¬ b) among affectional, ego-bolster¬
rent advertising illustrating two of ing, and ego-defensive needs.
the following: subcultural differ¬ 7. Find and discuss an example of cur¬
ences, a milestone of life, sex roles. rent advertising illustrating any
How does the sociologist view man’s three of the items in Question 6.
y behavior? How is this viewpoint 8. Define life styles and find two ex¬
applicable to advertising? Cite an amples of current advertising reflect¬
example from current advertising. ing different life styles.
Find and discuss an example of cur¬ 9. Explain what models of consumer
rent advertising illustrating two of behavior are, and the pros and cons
following: reference group, social of their usefulness to advertisers.
class, innovators, reducing risk in 10. Using examples of from current ad¬
purchasing. vertising, discuss the applicability

y How does the psychologist view

man’s behavior? How is this view¬
of the social class case report of
today’s beer advertising.
 Reading Suggestions 313
The
Behavioral
Barach, Jeffrey A., "Advertising Effec¬ Kangun, Norman, "How Advertisers Sciences in
tiveness and Risk in the Consumer Can Use Learning Theory," Business Advertising

Decision Process," journal of Market¬ Horizons, April 1968, pp. 29-40.

ing Research, August 1969, pp. 314- Kassarjian, Harold, and Thomas Rob¬
320. ertson, Perspectives in Consumer Be¬
Bauer, Raymond, and Robert Buzzell, havior. New York: Scott-Foresman
"Mating Behavioral Science and and Co., 1968.
Simulation,” Harvard Business Re¬ Katz, Elihu, and Paul Lazarsfeld, Per¬
view, September-October 1964. sonal Influence. Glencoe, Ill.: The
Berelson, Bernard, and Gary Steiner, Free Press, 1955.
Human Behavior: An Inventory of Lessig, V. Parker, Personal Characteris¬
Scientific Findings. New York: Har- tics and Consumer Buying Behavior.
court, Brace & World, Inc., 1964. Pullman, Wash: Washington State
Excerpted in Kleppner and Settel, Ex¬ University Press, 1971.
ploring Advertising, p. 90. Martineau, Pierre, "Social Class and
Bliss, Perry (ed.), Marketing and the Spending Behavior," Journal of Mar¬
Behavioral Sciences. Boston: Allyn keting, October 1958, pp. 121-130.
and Bacon, Inc., 1967. McNeal, James V. (ed.), Dimensions
Boyd, Harper W., Jr., and Sidney J. of Consumer Behavior. Appleton-
Levy, Promotion: A Behavioral View. Century-Crofts, New York, 1969.
Englewood Cliffs, N.J.: Prentice-Hall, Myers, James H., and William H. Rey¬
Inc., 1968. nolds, Consumer Behavior and Mar¬
Cohen, Joel B (ed.), Behavioral Sci¬ keting Management. Boston, Mass.:
ence Foundations of Consumer Be¬ Houghton-Mifflin Co., 1967.
havior. Riverside, N.J.: The Free Myers, James H., Robert R. Stanton, and
Press, 1972. Arner F. Haug, "Correlates of Buy¬
Day, George S., Buyer Attitudes and ing Behavior: Social Class vs. In¬
Brand Choice Behavior. New York: come," Journal of Marketing, October
The Free Press, 1970. 1971, pp. 8-15.
Dichter, Ernest, "How Word-of-Mouth Packard, Vance, The Status Seekers.
Advertising Works," Harvard Busi¬ New York: David McKay Company,
ness Review, November-December Inc., 1959-
1966. Robertson, Thomas, Consumer Behavior.
Engel, James F., David T. Kollat, and Glenview, Ill.: Scott, Foresman and
Roger D. Blackwell, Consumer Be¬ Company, 1970.
havior. New York: Holt, Rinehart Rogers, Everett, Diffusion of Innova¬
and Winston, Inc., 1968. tions. New York: Free Press of Glen¬

Glock, Charles Y., and Francesco M. coe, 1962.

Nicosia, "Uses of Sociology in Study¬ Westfall, Ralph, "Psychological Factors
ing 'Consumption’ Behavior," journal in Predicting Product Choice," Jour¬
of Marketing, July 1964, pp. 51-54. nal of Marketing, April 1962, pp.
Also in Kleppner and Settel, Explor¬ 34-40. Also in Kleppner and Settel,
ing Advertising, p. 93. Exploring Advertising, p. 100.
14
The Search
for the Appeal

The remarkable thing about advertising is that it can prompt people to

buy a specific, advertised product voluntarily. It has no authority to compel a
person to buy anything; it exercises no mystical power. To the most vigorous
exhortation of an advertiser, the meekest of men can yawn and say, "No,
thank you!" Apparently, however, people are buying goods as a consequence
of advertising. Since it has neither the power nor the authority to compel a
person to do anything, one may ask just how does advertising do its work?

Not Millions, Just One

In discussing advertising we deal with big numbers: billions of dollars spent

on advertising, millions of television sets, thousands of radio stations on the
air . . . billions, millions, thousands. But an advertisement deals with only
one person at a time—whether reader, viewer, or listener. If he feels the ad
is speaking directly to him, he pays attention; otherwise he does not. In either
case, he is indifferent to the fact that the advertisement is addressing millions
of others at the same time. His interest depends upon the degree to which the
ad speaks to him about his interests, his wants, his problems, his goals.

The Appeal

An appeal is any statement designed to motivate a person to action. When a

three-year-old says, "Please carry me, Daddy," he is appealing to his father’s
love (and is sure to get action). In seeking to move a person towards buying
a product, the advertiser likewise must appeal to some of the manifold motives
that prompt a man to act—as a desire to fulfill a hope, ambition, need, interest,
or goal. The central premise of the advertising appeal is its promise of a
benefit the product will render to the buyer.

314
 For example, the National Oil Fuel Institute planned a campaign to 313
The Search
urge householders who were not using oil heating to convert their heating for the
system to oil fuel. It listed 11 different appeals to the homeowner which Appeal

might persuade him to choose oil heat over any other forms, as follows:

Comfort Cleanliness

Convenience Dependability

Service from supplier Adequate hot water

Economy of installation Safety
Economy of operation Modern features
Trouble-free performance

The question arose as to which of these advantages meant the most to home-
owners, for obviously it would be better to dwell on that one subject than on
less significant ones. A research revealed that one stood out Adequate hot
water. A whole campaign was successfully built on that theme as shown in
the opposite ad.
In the case of a watch, the appeals might be:

—It is a stylish watch.

—It is an inexpensive watch.
—It is a dependable watch.

Similar lists can be made for any product, if you look at it through
the eyes of the prospective buyer. For example, take a checking account. To a
bank, a checking account is a specific kind of financial arrangement. But to a
customer, a checking account can represent:

Safety
Convenience
—of paying bills
—of keeping records
—of transferring funds
Accuracy
Status
Availability of funds instantly

Any of these, or some combination of them, may serve as effective bases for
appeals by banks to increase checking account customers. Similarly numerous
appeals may be made for any product. In this chapter we discuss how to ar¬
rive at that appeal which is most significant for a given product at a given
time.
 How many times do you
have to run out of hot water
before you
switch to Oil heat?

We don't know what kind of heating system family can use it up. is pretty important to him. That’s why fie
you have now. But if it isn’t dependable Oil heat, That in itself should be a good enough reason works harder to keep you happy.
chances are you've run out of hot water for heating your house with Oil. But if it takes So why don’t you get in touch with him?
more than once. And it's no fun taking a cold more to convince you, consider this. He’ll be glad to give you the facts.
shower. Or waiting around until the hot water Oil heat is comfortable. It's dependable. And do it soon.
builds up so you can do dishes, or the laundry. It’s safe, it's economical. And it's clean, in fact, Before you run out of hot
That doesn't happen when you heat with there’s no cleaner way to heat your home. water again.
Oil. Why? If you still want one more reason, your Fuel National Oil Fuel Institute,
Because Oil heats water at least three times Oil Dealer should be it. He's a neighbor, in Inc., 60 East 42nd Street,
faster than any other fuel. Faster than your business to serve you, so your family’s comfort New York, N.Y. 10017. YOU CAN DEPEND ON IT

A Campaign Theme Based on Research

Courtesy, National Oil Fuel Institute, Inc.

Advertising Agency: Fuller & Smith & Ross, Inc.
 317
Desirable Characteristics of Appeals The Search
for the
Appeal
The three characteristics that an appeal should have are that it be meaningful,
distinctive, believable.

What makes an appeal "meaningful”? When we ask this question,

we mean "What makes it most meaningful to the buyer?” There is only one
way to find out; go out and ask the kind of people who may become buyers.
The way you ask the question is a matter of research technique, but out among
the consumers lies the answer.

What makes an appeal "distinctive”? An appeal should present a

product in a distinctive light. If it is a new type of product, in the pioneering
stage, that news alone makes it distinctive. But if it is in the competitive stage,
as are most products, the first question to arise is, "What does it have to
offer that the others in the field don’t have? ’ That differential, to be worth
consideration, should also be meaningful; in addition, it should preferably be
conspicuous and demonstrable. If it lacks any such quality, perhaps it is time
that it be improved or restyled before any more advertising money is invested
in it.

What makes an appeal "believable”? This really means believable

to a skeptical prospect." If the product is a new, low-priced one put out by a
reputable company, that fact may be enough for a person to try it. If it is a
high-priced product, or if the claim exceeds the prospect’s experience with
similar products, or if indeed it is a new type of product in the pioneering
stage with which the consumer has had no experience, the burden of the ad¬
vertising is to corroborate its claims with the most desirable type of evidence
demonstration; accreditation by a recognized, competent authority (as Crest
toothpaste did by getting the American Dental Association’s endorsement for
its Fluoristan toothpaste when it first appeared); by trial offers, guarantees,
money back offer

The Search Within

Where does one begin looking for the appeal of a product? Right in the
product itself. The chief appeal of a product may lie in its whole reason for
being (its value goal), such as Calgon’s Cling Free, an anti-static fabric
softener, or Maclean’s toothpaste, the toothpaste that fought its way into a
highly competitive market by being the first advertised brand to be formu¬
lated for brightening teeth, while Close-Up toothpaste was formulated to
emphasize its mouthwash qualities. Or, there is Liquid Gold, which provides
natural oils to dried-out wood paneling and furniture, restoring their surfaces.
 318 Sometimes a product has a distinctive characteristic which it must try
Creating
to make more meaningful to consumers. For example, du Pont’s Zerex anti¬
the
Advertising freeze said, "Leaks are the #1 radiator problem, and Zerex stops leaks.”
The built-in uniqueness may be the distinctive capability of a firm
offering a service. For example, at a time when airlines were advertising with
a wide variety of appeals, such as tours with attractive destinations, on-the-
ground curbside check-in service, more comfortable seating, choice meals, in¬
flight entertainment, smiling stewardesses, Pan Am advertised, "Chances are
you choose an airline exactly wrong,” as a way of stressing the importance of
its own differential—its capability and experience in travel planning.
On the other hand, the Dutch government, which owns KLM airlines,
recognized that it could not pretend that Amsterdam had the glamor and
excitement of Paris, London, or Rome. Research by the Ogilvy & Mather
advertising agency showed that Amsterdam was considered to be lacking in
things to do. The resulting advertising program focused on "Surprising
Amsterdam,” listing many specific activities taking place there, and under¬
scoring the pleasant nature of the Dutch people and the high percentage of
them who speak English. This is a good example of the principle: "Sell what
you’ve got.”
The Greyhound advertising reveals another example of a unique
appeal. All intercity buses have competition from the airlines, and to a limited
extent from the railroads. The competition became particularly acute on the
Boston to New York run, because of the airline shuttle service, and the newly
launched high-speed Turbotrain between the two cities. But the one ad¬
vantage the Greyhound buses had was their lower price, and they advertised
the saving as the big reason for going Greyhound. Another example of finding
the appeal in "selling what you’ve got.”

Establishing distinctive image. For all products, it is important to

have distinctive advertising. But for some products, the importance is even
greater. Beer, for example. Beers differ in taste, but often the difference is so
subtle that when a man cannot get his favorite brand he will seldom reject
an alternate choice. Research, however, may reveal that different beers appeal
to different groups within the beer market, and the advertiser can direct his
efforts toward the type of beer-drinkers who would like his beer. For example,
Schaefer’s theme, "the one beer to have if you’re having more than one” (di¬
rectly appealing to heavy users) employed scenes of active men engaged in
athletics. In contrast, Miller’s advertising emphasized not activity, but relaxa¬
tion—"when it’s time to relax”—as the occasion to enjoy Miller’s; both the
setting and the music complemented the theme of relaxation. For Schlitz, the
emphasis was on gusto—with scenes of "rugged-individualist” type men in
strongly masculine and adventuresome settings. Each beer advertiser was at¬
tempting through his advertising to reach people whose personality patterns
matched those presented in the ads. The decision on the image to project was
an appeals decision.
 SAY WHAT THEY WILL ABOUT THE
TURBOTRAIN TO NEW YORK,
WE’VE STILL GOT THE LAST WORD.
Greyhound has more than twice as much serv- over air Shuttle fare). Mso you don’t
ice Vand usually gets you to New York sooner Also, Greyhound’s non-stop Shuttles leave ai seat for sure. So much for the last word,
than Amtrak for New York every-hour-on-the-hour, from When do you want to go?
Greyhound has more daily service than any 8 am to 8 pm every day. (Plus 2 other non- Non-stops leave Greyhound Terminal:
airline But here’s the last word: stops). AM 8:00 9:00 10:00 11:00
Greyhound's Shuttle saves you $12 round Also, they take you from Park Square to pm 12:01 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00
trio to New York, over Amtrak Turbotrain mid-town Manhattan in as little as 4 hours and 10 St. James Ave. Phone 423-5810
coach fares. ($19.44 over Parlor Car. $28.70 15 minutes. Even quicker from MBTA Newton. MBTA, Riyerside (Rte. 128, Exit 53) • Phone 969-8660
sOm* ‘Greyhound One Way.$9.65
■bTb Hflir fit It Greyhound Round Trip.... 19.30
nlH ■ Turbotrain Round Trip.31.30
iB Amtrak Parlor Car. 3874
pygMjgj M_Bjr Air Shuttle......48.00

GO GREYHOUND SHUTTLE
Every-hour-on-the-hour, non-stop.

Meeting Competition by Featuring Advantages

The Research Approach

Finding out what the consumer considers most important and attractive about
a product, or least attractive, may help not only in selecting the best appeal to
use, but may also lead to improvements in the product itself—even to a new
product. Research for one of these questions often ends up with answers for
the other. The two main types of such research are: (1) structured, and
(2) unstructured research. Sometimes they are used in connection with each
other.
319
 320 Structured Research
Creating
the
Advertising Structured research is designed to get specific answers to specific questions,
presented in the form of a questionnaire. Its great advantage is that everyone
is asked the same questions the same way: by scientifically planning the sample
of people you question, the results can be "quantified”—used as a basis for
advertising to a vast number of people. The limitation is that the questionnaire
may not be asking the right questions. (We will discuss later how this can
be overcome.) Whoever has answered a questionnaire has participated in a
structured research. It is the most widespread form of research.

The chief elements of a structured research are:

1. Selecting the sampling pattern
2 Deciding on the method of interviewing
3. Preparing the questionnaire
4. Carrying out the interview
5. Tabulating results

1. Selecting the Sampling Pattern

Advertising deals with large numbers of people; it would never be

feasible to learn their opinions if it were not for the principles of sampling.
Crisp described them this way:

If a small number of items or parts (called a sample) are chosen at

random from a large number of items or a whole (called a universe
or population) the sample will tend to have the same characteristics
and to have them in approximately the same proportion, as the
universe.1

The principles of sampling are used in many fields, such as when the
doctor draws a small amount of blood from your arm to get a reading on your
overall count of red and white cells, or when you take a sip of wine from a
bottle to judge what the whole bottle is like.
But how many people do you have to reach to get a fair sample of
a big market? is often asked. Statisticians have tables showing the possible
degree of inaccuracy for any given number of people chosen as samples. The
number needed is much smaller than most people would think. The principle
is that after a certain number of responses, all additional responses make only
an insignificant difference in the total result. After a time, it takes a fourfold
increase in the size of the sample to double the accuracy of the result, at a
cost that is hardly worthwhile.

1 Richard D. Crisp, Market Research (New York: McGraw-Hill Book Company

1957), p. 95.
 THE SAMPLE TREE 321
The Search
for the
Appeal

Most research samples can be identified as either probability samples

or nonprobability samples.
Probability samples. A probability sample is one in which each mem¬
ber of the group (universe) among whom the research is being conducted
has known probability of inclusion. The essential characteristic of a probability
sample is that each member of the universe has an equal chance of being
drawn and was selected at random by a method that could not predict whether
any given name would be included. There are two types of probability samples.
random and stratified.
Random (probability) sample. If you were to pick every tenth
name from a phone list (beginning anywhere at all), you would have a fair
sample of people whose characteristics are similar to those of all the people
in the rest of the phone book. Statisticians even have tables that will tell you
the degree of probable error in such a sample, which is known as a random
sample. When used in this sense, random does not mean a haphazard method
of sampling; it refers to a rigid mathematical approach to selection.
Stratified (probability) sample. Another type of probability
sample is the stratified sample, designed to sharpen the representations of the
sampling universe. We can stratify it by any criterion we want; for example,
quota, age, or city size. A stratified quota sample (referred to just as quota
sample) is one drawn with certain predetermined restrictions as to the char¬
acteristics of the people to be included. That is to say there is a fixed quota of
various types of respondents to be included. For example, the quota may be
75 percent men, 25 percent women, or 30 percent homes with no children,
and 70 percent homes with children (representing the proportion of homes
buying the product).
In stratified area sampling (referred to just as area sampling) one
geographical unit is selected as typical of others in its environment. It may
 322 be a few streets selected as typical of other streets in that section, a few parts
Creating
the of a city as representative of the whole city, or a town in each of several states
Advertising as typical of its respective area. The sampling effort will be confined to this
area. The advantage of area sampling is its accuracy. But it is costly.
In some major national samples, such as those used by Gallup, random
(probability) sampling is combined with area (probability) sampling. Dr.
Gallup explained:

• . . What we’ve had to do is break the country down by election dis¬

tricts—precincts. And we’ve picked those precincts, literally, out of a
hat, so to speak. We just line them up and pick every x number of
precincts, taking the various sizes into account. We do this right
across the country. So we end up with a random selection of geo¬
graphical areas.
Now, having chosen the districts at random, we send an interviewer
in and he follows a set pattern. He can’t just go and pick people by
himself. We actually give him a block assignment. He may be in¬
structed to start with the third house from the northeast corner and
then go to other dwelling units that assure a random selection. The
selection of those interviewed is out of his hands. . . .2

Nonprobability samples. For certain purposes it may not be necessary

to go to the expense and time of gathering a probability sample as we have
just discussed; we can use nonprobability samples. For example, an expert can
choose what he considers to be representative cases suitable for study, based
on his experience and knowledge of the held. This is referred to as a judg¬
ment sample. Another form of nonprobability sample is the convenience
sample—selecting whoever happens to be handy. A research man can show
an advertisement to the first ten men he meets on the street to hnd out if its
headline is clear and correctly understood. He will learn fast enough if it isn’t
absolutely clear.

2. Deciding on the Method of Interviewing

The chief methods of interviewing are by mail, telephone, personal

interview, with a panel and, before long, through cablecasting.

Mail interviewing. A questionnaire is mailed to the prospective

respondent along with a letter inviting cooperation and usually a reply card
or a stamped reply envelope.
The advantages of a mail questionnaire are: It is inexpensive—cost
per questionnaire mailed out is probably the lowest of any method. It enables
you to reach either a widely diversified geographical spread of people or a
relatively small group of people in widely scattered places.

2 "Do Polls Tell the Whole Story?’’ From a copyrighted interview in U.S. News
& World Report, October 5, 1964, p. 53.
 Among the disadvantages of a mail questionnaire are these: A major 323
The Search
problem in any mail survey is the question of "representativeness. Are those for the
who respond the same kinds of people as those who do not respond? Mail Appeal

surveys are also limited as to the kind of questions you can ask.
It is always desirable to pre-test a mail questionnaire by sending it
out on a small scale in order to make sure the questions are clear.

Telephone interviewing. In telephone interviews the interviewer

asks for the correct party and asks the questions from a prepared question¬
naire. Check-off boxes or pre-listed answers are also printed on the interviewer s
form to encourage response.
The advantages of telephone interviewing are: It is selective; it en¬
ables one to pinpoint specific types of people; one gets the information almost
instantly; and the costs of the telephone interview are lower as a rule than
those of personal interviews.
The disadvantages of telephone interviewing are: The length of
questioning time is usually limited; people who do not have telephones can¬
not be reached; and others that do may have calls screened by their secretaries.
A major problem is that information in depth may not be obtainable.

Personal interviewing. The personal interview is probably the most

widely used approach to getting information. Here, a trained interviewer
calls upon people in accordance with predetermined sampling methods and
enlists their cooperation in giving the desired information. The great ad¬
vantages of the personal interview lie in the number of questions that the
interviewer might be able to get answered, and in the ability to record re¬
spondents' comments that may prove very revealing of attitudes. The big
problem in using this technique lies in the caliber, training, integrity, and
supervision of the interviewer, on whom everything then depends. Also,
there is always the possibility that the interviewer lets his or her own bias
influence the answers, albeit unconsciously. Personal interviewing costs the
most per interview but tells you the most per dollar.

A panel. A panel is a group of people gathered as representative

of a larger group, with whom arrangements are made to send regular reports
of their purchases or listening habits. This is one method used by TV re¬
search companies who supply those in a panel with a device which records
their TV listening, along with a diary they keep of the stations tuned in.
Often matched groups of panelists are selected for conducting comparison
tests of ideas.
Small panels are often used in unstructured research, as we discuss
next, for guided discussions on problems of most interest to the advertiser.
Thus the panel is used for watching trends among a fixed group of
people, for getting spontaneous responses of occasional groups and for com¬
paring the impact of ideas among matched sets.
 LOUIS CHISK1N ASSOCIATES
MARKETING RESEARCH
105 WEST ADAMS STREET * CHICAGO 3, ILLINOIS * Phone; 332-3362

OUT

ASSOCIATION TEST: FIVE MARKETING THEMES

Sample: 204 Mothers

Area: Urban - Los Angeles

Theme No. 1 The cereal with the natural goodness of whole grains.
Theme No. 2 The different hot cereal for flavor, nutrition, economy.
Theme No. 3 The hot cereal that dares to be different.
Theme No. 4 The satisfying hot cereal for natural nutrition.
Theme No. 5 The natural whole grain cereal with the nut like flavor.

Number of Associations

Theme Theme Theme Theme Theme

FAVORABLE No. 1 No. 2 No. 3 No. 4 No. 5
highest quality 79 33 8 38 46
most adequate breakfast 61 51 7 50 35
best for daily use 61 77 6 35 25
most costly ingredients 64 14 21 17 88
most flavorful 29 8 8 ill
most appetizing 54 30 12 25 83
most appealing 61 32 12 18 81

Total 428 266 74 191 469

UNFAVORABLE

lowest quality 9 39 113 25 18

least adequate breakfast 9 29 119 25 22
not best for daily use 12 30 Ilk 31 17
cheapest ingredients 12 71 76
least flavorful 21 28 98
29 *T
14
9
48
least appetizing 18 34 93 45 14
least appealing 8 48 97 40 n
Total 89 279 712 243 105

Grand Total 517 545 786 434 574

Selecting Themes

WTuch of these advertising themes mean most to women in connection with a cereal ?
The above is an analysis of the reactions of mothers. Themes #5 (Score 469) and
#1 (Score 428) proved best. Courtesy, Louis Cheskin Associates
 Cablecasting. The newest entrant to the research field is cablecasting, 323
The Search
with two-way communication. A series of research questions can be asked at for the
the local CATV station, and the subscriber can state a choice by pushing a Appeal

button (still pending).

3. Preparing the Questionnaire

The tool of the structured interview is the questionnaire to which

the interviewer must adhere. In preparing a questionnaire, it is important to
have clearly in mind the information one is trying to learn, and to include
only questions that will gather facts towards this objective, eliminating inter¬
esting” questions that will not add information to the problem at hand.
Questions must be clear to the person interviewed; they must have
the same meaning for everyone. The person questioned should not be put in
the position of trying to impress the interviewer that he is on a higher socio¬
economic or cultural level than he really is. One should try to avoid personal
questions, such as those dealing with race, politics, and religion. A question¬
naire that can be checked off is better than one that must be filled in.
The questionnaire for a telephone survey should be relatively short.
A mail survey might be somewhat longer, and could include more open
end” information (inviting a person to express himself) since the respondent
can take his time writing the answer. A personal interview may be fairly long
—usually ranging between 15 and 45 minutes.
A questionnaire should be pretested to check for ease of interpreting
instructions, for question clarity, for logical sequence of questions, for length,
and for any unanticipated problems.

4. Carrying Out the Interview

In the case of a mail research, the problem is a purely mechanical

one of mailing out the questionnaire to the selected list and tabulating the
replies. Much of this is done by computer, as revealed in the little numbers
that are affixed to the questions in many such questionnaires. Many question¬
naires often leave room for further comment, and these are very important
and deserve intensive review by some competent person to pick out significant
statements, and not be left to mass summary alone.
In the case of personal interviews, everything depends upon the
interviewer’s personality and diligence in getting responses, and most of all,
upon the interviewer’s integrity. Research companies whose reputations de¬
pend upon the accuracy of the field reports have check-up systems whereby a
supervisor will phone a sampling of names on the reports handed in to make
sure the interviews actually took place.
 326 5. Tabulating Results
Creating
the
Once the questionnaires are sent in, the replies are reviewed. Addi¬
Werbung
tional comments noted on the questionnaires are grouped into categories as
"other favorable comments" or "other unfavorable comments." The results
are tabulated and summarized. At this point, the conclusions are presented
to management for their interpretation and use.

Criteria for Structured Research

By way of brief review—the Advertising Research Foundation uses

the following criteria for judging research studies:

1. Under what condition was the study made—including period of

time, definition of terms, methodology?
2. Has the questionnaire been well designed?
3. Has the interviewing been adequately and reliably done?
4. Has the best sampling plan been followed?
5. Has the sampling plan been fully executed?
6. Is the sample large enough?
7. Was there systematic control of editing, coding, tabulating?
8. Is the interpretation forthright and logical?

Unstructured Research

In unstructured research an interviewer, by appointment, spends a lot of time

with one person, or a small group of people. He will have only a list of topic
areas to cover, rather than a set of specific yes or no questions. The person
interviewed is invited freely to express his feelings and attitudes toward a
product. He is not given a questionnaire. The unstructured interview is usually
conducted early in the research process. It is also known as a depth interview
or motivation research or a projective study. Dichter comments:

Many of the aspects of depth interviewing are borrowed from the

approaches used in psychiatry. We employ these techniques con¬
tinuously in our daily lives. When the hostess keeps urging us to
stay a little longer, but yawns at the same time, most of us don’t need
any knowledge of depth interviewing or of psychology to detect a
discrepancy between her statement and her actual feelings. We leave.
Basically a depth interview is a nondirective interview. The respondent
is being urged to talk about a subject rather than to say yes or no to
a specific question. No questionnaire, in the usual sense, is used.3

3 Ernest Dichter, Handbook of Consumer Motivations. Copyright © 1964 McGraw-

Hill, Inc. Used by permission of McGraw-Hill Book Company, New York, p. 414.
 In another form of unstructured technique designed to get a person 327
The Search
to tell what he really thinks about a given subject, he is asked to complete a for the
Appeal
sentence, such as,

The thing I like best about my car is . . .

The kind of men who use electric shavers are . . .

Unstructured research also uses cartoons which will be shown to a person who
is asked to describe what is going on, or else to complete within a balloon a
sentence in the cartoon. The whole purpose of this approach is to get an in¬
dividual to reveal his real attitude towards the subject being studied without
the influence of the interviewer. The research director of one agency, com¬
menting on the role of such research, stated that some of the subheads and
even headlines have come directly out of the mouth of consumers.
The unstructured technique is used to ask a woman, or a panel of
women, to give their opinion on different products or ideas. They may be
requested to rank them from one to ten, or compare them as "superior,” "in¬
ferior,” and if so why, or "about the same.” Or they may tell in their own

4 Dr. Alin Gruber, of Norton Simon Communications, Madison Avenue, April

1972, p. 16.
A Projective Cartoon
Designed to get a person to express his own attitudes about fences.

/' \
/ Well, that's what
/ I hear the people \
/ \
{ they said, but I think there '(
{ down the street are thinking | i /
v / v was another reason /
\ of buying a fence /
\

✓✓ ' \\ "'7-'>'..
/ / You're right!
/ i
i Yes! They told me it was ! They're thinking about it J
i /
i because... > \ i

because...

T-
\

Courtesy, Anchor Post Products

Advertising Agency: VanSant, Dugdale and Company, Inc.
 328 words what they really think of the products they are using, or have used, and
Creating
the why they changed, or what their idea is of a dream product in the advertising
Advertising field. It s an invitation to open up and talk freely in some area of interest
which relates to their experience and attitude in relation to a product, service,
or firm. It has to be done on a personal basis, either alone or in a small group,
under a discussion leader, at which time tapes may be made to be studied more
carefully later.
There are several schools of thought about unstructured research. One
group holds that unstructured research relies too much on the competence and
personality of the interviewer, that it takes a lot of time per interview, and
that the feasible number of interviews does not represent a sample that can be
"quantified/' hence does not meet the criterion of a scientific methodology.
Proponents of the unstructured school hold that full free-flowing expression
from fewer people provides greater insights than precise but superficial
answers to compartmentalized questions from many people* that such research
provides new hypotheses that can then be validated, if desired, by quantitative
research.
The various forms of unstructured research are particularly helpful
in generating new ideas for products and advertising appeals, in exploring
general reactions to product categories, and in providing directions that can
be followed up in structured research.
At a later point in the book we again take up the subject of research
to appraise which of a series of advertisements most effectively presents that
appeal, and finally to appraise the whole campaign built around this important
decision.

Strategy Problems and Decisions

Balancing importance and distinctiveness. An important product

characteristic makes for a meaningful appeal. But, as Overholser points out,
the more important an attribute is to a large number of consumers, the less
likely it is that any brand . . . will have a unique advantage. The strategist
must often face a difficult choice between emphasis on an important but
generic quality or on a somewhat less important but differentiating quality." 5

Target market considerations. While target market considerations

always affect appeals decisions, sometimes they are of particular importance.
This was so when Northwestern Mutual Life Insurance Company examined
its image in conjunction with a campaign very much aimed at non-owners of
the company’s insurance.

5 Charles Overholser, "Advertising Strategy from Consumer Research," Journal

of Advertising Research, October 1971, p. 9.
 Its research examined the desirability of ten characteristics of insur 329
The Search
ance companies, and the image of Northwestern in relation to them. for the
Appeal

1. Is an old and large life insurance company.

2. Offers insurance at a lower cost.

3. Is very selective about whom it will insure.
4. Has a high return on investments.
5. Holds its overhead costs to a minimum.
6. Has among the best agents in the insurance business.

7. Is a mutual company.
8. Has agents that sell you the correct amount of insurance for your
needs and resources.
9. Pays high dividends to its policyholders.
10. Gets much of its business from old customers.

A research was conducted among the company s current policyholders, and

among non-owners. All respondents were from the same demographic groups
of prime insurance buyers. The research pointed to three particular character¬
istics :

—"an old and large insurance company"

—"has among the most knowledgeable agents in the business
_"agents help you decide on the correct amount of insurance for your
needs and resources."

All three of the selected characteristics were rated very strongly by policy¬
holders as representing what the Northwestern was like—in fact as a com¬
pany. Second, these three were all characteristics which ^/z-owners very much
did not see the company possessing. Advertising s job was to communicate
believably to non-owners what owners knew to be strengths. Separately, for
owners, the advertising would serve to reinforce the known positive elements
of the company’s image. (The complete report on the campaign which fol¬
lowed is presented in Chapter 23.)

The reward for not following competition. Every responsible manu¬

facturer in any field will seek to find out what the public wants most in a
product such as his, and the answer in almost every case case will be the
same. Most manufacturers will proceed, therefore, to give the buyer what
he seeks, as best they can. Because all manufacturers are competing by using
the "most wanted" quality, that may leave the market clear of competition
for a manufacturer who specializes in the so-called "less wanted quality.
That’s what Motorola did.
 330 The Motorola Company started with consumer research in the mid
Creating
the 1960s on what attributes people wanted most in color television sets. This
Advertising investigation showed that picture quality was most important (about 50 per¬
cent), then ease of tuning (about 30 percent), and then service (about 15
percent). Here is where management judgment entered: The company de¬
cided to aim heavily at the 15% service group, because competition was not
focusing on this area. This was the main appeal and target market. (At the
same time, attention was paid to the other areas, but the focus was on service.)
From this decision came the product development efforts, leading
to an accessible chassis with plug-in modules. In turn, the chassis was built
in slide-out form, for its distinctive advantage. The slide-out feature was
dubbed "works-in-a-drawer” as the "communication key”—the term used to
describe how technical features are presented to the public.

A Guide for Action

As we have observed, a person may buy a product for many reasons, each
representing a different appeal. We have discussed research methods to find
the most effective appeal for a given product in a given market at a given
time. But first we have to understand the nature of appeals—why people
buy the way they do. This calls for constant observation; this calls for intui¬
tion. Unless a person is willing to sharpen his talents in these directions, re¬
ports are cold statistics, which can lead to costly errors of operation. In the
foregoing Motorola case, although research showed that "service” was way
down the list of importance to the TV set buyer, it was management’s judg¬
ment to develop this feature because competition was not doing so.
We have support for the role of intuition in this scientific age from
Lord Brain, late President of the British Association for the Advancement of
Science, who said,

The contributions which science can make to the interpretation of

something as complex as human nature are at present limited, and in
unscientific theories, as in art, there may be insights, intuition, and
illuminations, which are of value for practice as well as for theory.6

It is good that we begin our creative work with the "insights, intuitions and
illuminations of which we are possessed, and which "are of value for prac-
tice especially in translating research findings into warm advertisements.

6 Lord Brain, F.R.S., "Science and Behavior,” The Listener, LXXII, No. 1848
(August 27, 1964), p. 294
 331
The Search
for the
Appeal

Consumer Research on Banking Services

A case report on consumer questionnaires

A suburban bank in a metropolitan area was interested in learning about

consumer attitudes toward banking services generally, and reserve-credit ac¬
counts in particular. The latter was then a relatively new service in the area.
It gave consumers the opportunity to write checks for more than their balance
_in short, make a loan whenever they wished. The research was built around
the accompanying questionnaire.

Objectives. The questionnaire was designed to explore reactions to

the reserve-credit service, get reactions to a proposed single monthly statement,
and to link that information to people’s behavior regarding other banking
services. Further, it could reveal the benefits most likely to attract a new
reserve-credit account. It also helped identify the kinds of people most inter¬
ested in the bank’s services and get information on consumer reactions to
prospective advertising appeals.

Procedure. The questionnaire was mailed on a predetermined

sampling basis to a cross-section of homes randomly selected in the several
communities served by the bank. Respondents were not asked to give their
names. In a brief cover letter they were asked to give their "thoughts about
banking services ... to help create new and better banking services for every¬
one in this area.’’ To encourage response, the questions called mostly for
checkmarks or very brief answers. A postage prepaid envelope was enclosed.
The return address was not that of the bank itself, to avoid prejudicing re¬
sponses.

Detailed analysis. The initial questions help to identify whether

respondents are at present actively involved with bank services, especially
minimum balance and no-charge checking accounts (Question 2). Question 3
identifies those who have bank-issued credit cards, how they have used them,
and the banks involved. Those with such a bank-issued charge card pre¬
sumably would be more interested in the new reserve-credit service. Questions
4-9 are the core of the questionnaire. First, the respondent’s familiarity with
 332 the reserve-credit service is probed. Questions 5 and 6 explore how they have
Creating
the
used the account and why they like it. This information can be used to develop
Advertising basic appeals in the advertising. This can be in terms of showing particular
uses which consumers make of the service, as for travel, shopping, taxes, in¬
surance, and the like. Or it can be in terms of reasons for liking the service—
for example, ability to write one’s own loan, low payments, or ease of use.
Note that these questions are answered only by those who already
have such an account. Thus, a bank already offering the service can learn about
the actual behavior of users.
Question 6 permits a direct comparison of the appeals of a reserve-
credit account and a bank-issued charge card.
Questions 7 and 8 explore the reasons for not having an account and
which financial benefits of one might attract the consumer.
Question 10 is addressed to a new banking service in the community,
namely a single monthly statement with checking, savings, and reserve credit,
plus transfer privileges. In addition to getting basic reactions to the service,
the question sought reasons for lack of interest in it. From the latter informa¬
tion, executives could better assess the strength of negative reactions and per¬
haps judge how they could be overcome.
Questions 11 through 14 gather statistical information, which per¬
mits identification of those who represent the best potential market for the
new services. It also allows special analyses of the reactions of particular con¬
sumer groups.

Findings. In terms of the focus of the advertising, achieving aware¬

ness of the reserve-credit account was shown not to be a problem. Many
consumers were aware of "reserve-credit’ ’accounts (over 75 percent of
respondents), but relatively few actually had such accounts (about 20 per¬
cent). Thus, advertising would not have as much a task of pure information
as would be the case if awareness were low. Rather, the advertising would
have to overcome the reservations expressed by the "aware but don’t have’’
group about borrowing at all.
Clues of specific appeals came from the responses of non-holders of
the account and also from present users. Among respondents who were aware
of reserve-credit accounts, but had not opened one, about 30 percent listed
at least one benefit that would interest them in applying for an account. This
showed there was an opportunity to try to convince people to open a reserve-
credit account.
Holders of reserve-credit accounts reported that they most liked the
service because they were able to write their own loans, and that the account
was nice for emergencies. These replies provided direct appeals for future
advertising.
Please indicate your response by placing a check mark in the appropriate space. It will take just a
few minutes to complete the questionnaire; thank you for your help.

1 Do you have a savings account? (Please answer for your main account, it more than one.)

( j1 yes, with --—-5,6,7

(please enter name of bank)

Please name other banks where you have savings accounts:

_______8,9,10
__11,12,13

( )2 no

2. Do you have a checking account?

( )1 yes ( )2 n0 14

If “yes”, what type of account do you have? (Please answer tor your main account, if
more than one.)

( )! “Regular” or “Special”-pay service charges

( )2 Minimum Balance Required-but no service charges 15
( )3 Free-but must pay for checks
( )4 Free—no charges at all
( )5 Free—savings account required

Which bank is your main checking account bank?--16,17,18

(please enter name of bank)

Please name other banks where you have checking accounts.

19,20,21

____ 22,23,24

3. Do you have a bank charge card?

( )* yes ( )2 no 25

If you have one or more cards, please check the one you use most often.

( )* Master Charge ( )2 BankAmericard ( )3 other 26

Which bank issued that card?--27

(please enter name of bank)

Please indicate below ways you have used your bank charge card in the past Year:

( )* for travel and/or entertainment 29

( )2 for shopping
( )3 for a major purchase (over $ 100)
( )4 for an emergency expense
( )5 to take advantage of a bargain
( )6 for taxes and/or insurance premiums
( ) other (please specify)_ _ 30
( )7 I have not used my card in the past year

333
 Are you familar with “reserve credit” type accounts, such as Evergreen, First Check Credit,
Check-Loan, or “The Long Green Line”, which allow you to write a check for more than
your checking account balance, or to “make your own loan” by writing a special check?

( ) yes, I have this type of account with 31,32

(please enter name of bank)
Please check the type of account you have:

( )* write checks for more than checking account balance

( )2 write special checks to make a loan 33
( )3 both of the above

( )* yes, I know of this service, but don’t have it. ) Please

) go to
34
( )2 no, I am not familiar with this service ) Queston 7

5. Please indicate ways you have used your “reserve credit” account during the past year:

( )* for travel and/or entertainment

( )2 for shopping 35
( )3 for a major purchase (over $ 100)
( )4 for an emergency expense
( )5 to take advantage of a bargain
( )6 for taxes and/or insurance premiums
( ) other (please specify) ____ 36
( )7 I have not used my account in the past year

Please indicate below features of your “reserve credit” account (and bank charge card, if
you have one) that you like best:

Reserve Charge
Credit Card
37,38
easy to use ( )* ( )*
convenient to carry ( )2 ()2
widely accepted by stores ( )3 ()3
nice for emergencies ( )4 ()4
ability to “write my own loan” ( )5 ()5
low monthly payments ( )6 ()6
overdraft privilege ( )7 ()7
other (please specify below) ( )8 ()8

(please go to question 9)

7. * If you do not have a “reserve credit” account, please indicate why.

( )J
lam unfamiliar with the service
( )2
my bank doesn’t offer it 39
( )3
I don’t need it because 1 have a bank charge card
( )4
my application for reserve credit was refused
( )5 I don’t like to borrow
( )6 other (please specify)_ 40

334
8. If you do not have a “reserve credit” account, would the benefits listed below interest you
enough to apply for one?

Reduced interest rate ( )'

- 4 1
Up to 36 month repayment ( )z
Two “no-payment” months per year ( )3
Courtesy check cashing privilege ( )4
Opportunity to purchase merchandise at special
low prices using “reserve credit” ( )5

( )* yes (please check the benefits which interest you most) ) Please
) go to 42

( )2 no ) Question
) 10
9. Would the benefits listed in question 8 interest you enough to switch your “reserve credit”
account to a bank that offered them?

( )1 definitely yes 1 Please check the benefits in question 8 above that interest
( )2 probably yes f you most 43
( )3 maybe
( )4 probably no
Please describe why not- _44
( )5 definitely no j

10. If your bank offered a new service based on a single monthly statement detailing your
checking, savings and credit accounts (which would also enable you to transfer funds
between accounts automatically), would you use this service?

( )! definitely yes
( )2 probably yes 45
( )3 maybe
( )4 probably no Please describe why not-
( )5 definitely no---
_46

Please answer the next few questions for statistical purposes only:

11. In what city or town do you live? 47

1 2. What is the occupation of the head of the household? Please indicate profession or type of
occupation, not place of employment.-- 48

In what city or town does he (she) work? ___ 49

13. In which age group is the head of the household? (check one)

( )* under 21 ( )3 30-39 ( )5 50-59 50

( )2 21-29 ( )4 40-49 ( )6 60 and over

14. In which category is your total family income? (check one)

( )i under $5,000 ( )3 $10,000-$14,999 ( )5 $20,000-$24,999 51

( )2 $5,000-89,999 ( )4 $1 5,000-$ 19,999 ( )6 $25,000-over

335
 Sodaburst
A case of consumer research for advertising appeals
and product development

Sodaburst is a frozen homemade ice cream soda product—a combination

of ice cream, syrup, and frozen carbonated water. By the addition of tap
water to the combined unit, the carbonated water would release and mix with
the syrup to make a homemade ice cream soda ready to serve in a minute.

Research areas. Some consumer research was undertaken during the

product development period, chiefly to aid in the product’s physical and taste
formulation and in estimating the size of its potential market. Later a week-
long home use test in 400 households was conducted, including a number of
follow-up questions oriented to developing advertising appeals and message
strategy for Sodaburst’s initial test marketing. From this information, and
the earlier product research, the basic advertising premise and advertising
message on behalf of the product were to be developed.
The questions covered housewives’ reaction to: (a) the eating occa¬
sions for which they saw Sodaburst as appropriate (such as snacks or dessert);
(b) the appeal of the product among adults, teens, or children; (c) specific
product appeals (such as flavor, convenience, and nutrition).

Findings. The main findings in each area were:

(a) Children’s and teen parties and snacks, rather than desserts, were
the occasions seen as most suitable for the product’s use. "Very appropriate”
scores were children’s parties 81 percent, teens’ parties 71 percent, evening
snacks 68 percent, afternoon snacks 54 percent, dessert at lunch 23 percent,
dessert at dinner 19 percent, and serving to adult guests 22 percent.
Separately, housewives also said that they saw the product helping to
promote "family sociability” at snack time. The product was not viewed as a
direct substitute for fountain ice cream sodas because the latter also carried
with it the experience of "going out.”

(b) Young children and teenagers were seen about equally by the
housewives as groups to whom the product would appeal, with ratings of 75
percent and 72 percent respectively in terms of "a great deal” of appeal.

Source: Adapted with permission from Sodaburst (A) and (B) cases in Stephen
A. Greyser, Cases in Advertising and Communications Management (Englewood Cliffs, N.J.:
Prentice-Hall, Inc., 1972).
Adults were not considered a major prospective consuming group, with only 337
The Search
a 29 percent rating. for the
Appeal
(c) Flavor and taste mentions of the product dominated the specific
"likes” expressed by housewives about the product itself. This area was men¬
tioned by 67 percent of the housewives—and by 78 percent of those who
(separately) indicated a "high intent” to buy the product. Within the flavor-
taste areas the two most important particular positives cited were "tastes like
a real ice cream soda” and "good ice cream taste.” Convenience and ease of
preparation were the two areas mentioned next most frequently. In a separate
question, 68 percent of all housewives—and 80 percent of those with high
intent to buy—rated Sodaburst as "very” or "fairly” nutritious.

Decisions. The Sodaburst product management and advertising

agency group drew from this information (from the 400 housewives in the
use test) as they developed the basic claim and message for Sodaburst. The
statement of the message strategy included:

The principal objective of the advertising will be to announce that all

the familiar taste enjoyment of an ice cream soda is now quickly and
conveniently available at home with Sodaburst. A secondary objective
will be to convince housewives of the product’s quality/wholesomeness
that makes it suitable for all-family consumption. The copy will
dramatize the interest and excitement inherent in the totally new
product concept Sodaburst represents.

The basic advertising premise built on the latter point about the new concept
represented by the product: "A real ice cream soda that makes itself at home
in one minute cold.” The initial ads put primary emphasis on the product
being consumed by children with a mother in a "family at snacktime” setting.

Review Questions

1. What is meant by an advertising ap¬ 4. What are the qualities recom¬

peal? On what is it based? What is mended for an effective advertising
it supposed to do? appeal ?

2. From current advertising of differ¬ 5. What are the differences between

ent specific appeals, see how many structured and unstructured re¬
you can find being used for different search? What is the chief use of
brands in the same field. each?
3. Thinking about the most expensive 6. What are the basic steps of a struc¬
item you bought in the past six tured research?
months, what was the basic reason
you bought the product? The par¬ 7. Give a brief definition, description
ticular brand? or explanation of:
 338 a. random sampling 9. As an advertising manager review¬
Creating b. probability sampling ing a large-scale consumer research
the proposal, discuss the guidelines you
c. area sampling
Werbung
d. panel would use in judging it.
e. stratified sample
10. In the consumer research conducted
f. depth interview
by Sodaburst, how were the findings
8. What are the chief methods of get¬ in each of the three main question
ting information in a consumer areas used in the decisions made
survey by interviewing? What are about the product’s ads?
the principal advantages and disad¬
vantages of each?

Reading Suggestions

American Marketing Association, "Sam¬ vertising & Sales Promotion, Novem¬

pling in Market Research,’’ 1958. ber 1971, pp. 38-41.
Axelrod, Joel, "Reducing Advertising Overholser, Charles, "Advertising Strat¬
Failures by Concept Testing,’’ Journal egy from Consumer Research,” Journal
of Marketing, October 1964, p. 41. of Advertising Research, October,
Boyd, Harper W., Michael L. Ray, and 1971, p. 9.
Edward C. Strong, "An Attitudinal Stefflre, Volney, "Market Structure Stud¬
Framework for Advertising Strategy,’’ ies: New Products for Old Markets
Journal of Marketing, April 1972, pp. and New Markets for Old Products,”
27-33. in Application of the Sciences in
Boyd, Harper, and Ralph Westfall, Marketing Management. New York:
Marketing Research. Homewood, Ill.: John Wiley and Sons, 1968.
Richard D. Irwin, Inc., 1964. Twedt, Dik W., "How to Plan New
Business Week, "Why Business Is Products, Improve Old Ones, and
Spending Millions to Learn How Create Better Advertising,” Journal
Customers Behave,” April 18, 1964. of Marketing, January 1969, p. 53.
Also in Kleppner and Settel, Explor¬ Wells, William D., Seymour Banks,
ing Advertising, p. 260. and Douglas J. Tigert, "Order in the
Dichter, Ernest, Handbook of Consumer Data,” in Changing Marketing Sys¬
Motivation. New York: McGraw-Hill tems, ed. by Moyer, Reed. Chicago:
Book Company, 1964. American Marketing Association,
Long, Durwood, "Selectivity: Key to 1968. Also in Kleppner and Settel,
Effective Sampling Techniques,” Ad¬ Exploring Advertising, p. 289-
 15

From Appeal to Total Concept

We are now at the point of translating the appeal into a printed advertise¬
ment that could, if we desire, provide the theme of an entire campaign. This is
the great moment of complete detachment from all the stereotypes by which
the product has been described in the past; the moment to view it afresh in
terms of a person who asks, "What can this mean to me?” The sharpest form
of answering is with a headline, alone or with a visualization, representing a
complete concept on which the copy 1 can be built.
The importance of thinking in terms of a total concept was revealed
in a help-wanted advertisement for two art directors, run by an advertising
agency in Advertising Age. It said:

We want total concept people who believe they can write as good a
headline as some of our writers (because our writers, more often
than not, have great visual ideas).

We therefore want to think of an idea in terms of both copy and

illustration as a unit. As most printed ideas are first expressed with words, we
discuss copy first, in this chapter, and then visualization, in the next.

The Structure of an Advertisement

Beginning with the promise held forth by the appeal, the advertisement may
develop along these lines:

1 The term copy is a carry-over from those days in printing when a compositor was
given a manuscript to set in type and told to copy it. Before long, the manuscript itself became
known as copy. In the creation of a printed ad, copy refers to all the reading matter in the ad.
In the production of printed advertisements, copy also refers to the entire subject being repro¬
duced—words and pictures alike. This is one of the instances in advertising of the same words
being used in different senses—a practice that all crafts and professions seem to enjoy as a
way of bewildering the uninitiated.

339
 340 An advertisement begins with Promise of benefit
Creating
the If called for, it then offers Amplification
Advertising
If called for, it then offers Proof
It ends with Action requested or implied

For those who like acronyms, it’s PAPA.

Promise of Benefit (The Headline)

Usually, the promise of a benefit, or an idea leading directly to it, is

expressed at the outset. Sometimes this tells the whole story. But frequently,
more needs to be said, in which case the first statement can serve as a head¬
line. The headline is the most-read part of the ad. It is the part that causes
a person to decide whether or not to read further. It is the part on which
writers labor the hardest. The chief forms of headlines are:

—Direct promise of benefit

—News (of product)
—Curiosity and provocative
—Selective
—Command

Direct-promise headlines. These make a direct promise of the way the

product will benefit the reader, thus:

Stop Sunburn Pain Solarcaine

Wash after Wash, Hanes Fits Hanes T Shirts
How to Cook Frozen Meats and Poultry
Without Thawing Reynolds Wrap

Any factual promise made within an advertisement must be supportable by

evidence.

News headlines. People are interested in "what’s new’’ in products affecting

their families or themselves, as in these examples:

New Westinghouse "Heavy Duty 15”

Washer: Engineered to prevent costly
repair bills Westinghouse Washer

New Kleenex towels absorb 50% more

because they’re 2 layers thick—not 1 Kleenex Towels

Bye Bye Yellow . . .

Hello Clear . . .
A new "Scotch” Brand Tape is here. Scotch Tape
Facts about a product are new as long as a substantial number of prospective
buyers are not aware of them. This period is longer than those close to the
product believe it is.

Curiosity and provocative headlines. As a change of pace from the

direct-promise headline, an advertiser may use a headline to arouse the
curiosity of the reader, or provoke him to read the copy. The headline prom¬
ises that what follows will be of interest to him. The promise that the product
holds forth can then be presented in the copy. As examples:

How many times do you have to run

out of hot water'before you switch to
oil heat? National Oil Fuel Institute

How much should a young man tell Phoenix Mutual Life

his wife? Insurance Co.

Does your child know why it doesn’t

hurt when his hair is cut? Do you? Book of Knowledge

An advertisement that gets the reader’s interest by arousing his curiosity

should proceed immediately to satisfy it; otherwise the reader will feel he has
been tricked.

Selective headlines. A reader scanning a publication is much more

likely to read an advertisement if it seems to concern him particularly. For
this reason, we have the selective headline, addressed to a particular segment
of the total readership of a publication.
To illustrate this principle, we have here four headlines:

To All Men

To All Young Men

To All College Men

To All College Seniors

The first of the foregoing headlines is addressed to the greatest number of

readers, but would be of least interest to any one of them. As the series
progresses, each headline reduces the size of the audience it addresses, but
improves the chances of attracting that particular group.
Headlines can reach out to select particular groups of readers either by
addressing them directly, or else by the nature of the problem discussed, as:

How to Cook for a Man Birds Eye Chicken

Troubled with Deafness? Zenith Hearing Aids

 342 The best reason for going to Europe
Creating
this summer is because you’re not
the
Advertising getting any younger Pan Am Airlines

Command headlines. In another category are headlines that directly

urge the reader to use or buy the product, usually holding forth a reward if
he does so, as:

Use an Evinrude; get more fish Evinrude Outboard Motors

Seal the cylinder; save the oil Sealed Power Piston Rings
Give him an electric blanket; he’ll
feel warm all over Pacific Gas & Electric Co.

Different types of headlines can often be combined. Based on a lifetime of

mail-order experience in the testing of headlines, which provides the most
scientific data there is, Schwab writes:

There are two principal attributes of good headlines. They select,

from the total readership of the publication, those readers who are
(or can be induced to be) interested in the subject of the advertise¬
ment. And they promise them a worthwhile reward for reading it.2

The sub caption. The most important thing about a headline is that
it should say something important to the reader. The actual number of words
is not of the essence—the fewer the better, of course, but a long message can
be constructed with a main headline and with a sub caption (also called a
subhead). The subcaption can spell out the promise of the product, stressing
its unique features. It can invite further reading. As examples:

POLAROID INTRODUCES
THE $19.95 BIG SHOT

An amazing camera for goof-proof close-ups

(Polaroid Cameras)
* * *

THE TIMEX QUARTZ WATCH

$125

A micro-computer with over 300 transistors

controls its accuracy
to within 15 seconds a month.
(Timex Quartz Watches)
* * *

2 Victor O. Schwab, How to Write a Good Advertisement (New York: Harper &
Row, Publishers, 1962), p. 5.
 FACTS 343
Copy
ABOUT LEARNING
TO FLY

Read how you can enjoy the exhilarating

and adventurous world of flight

(Piper Aircraft)

Amplification

Before buying a high-priced, once-in-a-long-time product, a person

may wish to get all the specific facts about it that he can, so that he can com¬
pare specifications with those of other sellers. An advertisement for such a
product will proceed from the headline and subheadline to amplify and sup¬
port the claims made with details. Since you can seldom put all the technical
facts into one advertisement, you pick out a few of the more cogent ones and
present them in terms of the benefits the buyer can expect as a result, as was
done in the following Westinghouse Heavy Duty 15 Washer advertisement
(italics by author):

Take a look at that heavy duty suspension system securely bolted to

its massive steel base. No shimmy, shaky antics here. It s designed to
take the strain of heavy family use, and to prevent vibrations caused
by extra-heavy washloads.

The amount of detail in an advertisement should be sufficient to

answer the questions that a person considering the product might ask at that
time. If there are more facts needed to make a buying decision than can be
presented in that space, the reader can be invited to go to the dealer for a
demonstration, or to write for further information.

Proof

There comes a point in the consideration of a new or costly product

when the prospective buyer wants proof or evidence that the product will
perform as claimed. He wishes to reduce the risks of purchase before he
buys the product. Among the forms of evidence used to allay his doubts are:

Proofs of quality control. Westinghouse reported that it checked

and rechecked its washing machine "from its porcelain top right down to its
massive steel bottom, for 138,000 hours.”

Demonstration. Reports of timely demonstrations and unusual ex¬

periences are often used, as in the case of Firestone Tires, which said:
 344 First time in history, winner of Indianapolis auto race goes full 500 miles
Creating
without a tire change. . . . Now the same Sup-R-Tuf rubber in durable
the
Advertising Firestone race cars is in Firestone tires for your car.

Duofold 2-Layer underwear reported:

This is the two-layer underwear that conquered Mt. Everest [worn by

leader of American Expedition].

Performance. Sometimes such an experience offers such dramatic

proof of the virtues of a product that a whole advertisement is built around it,
as was done by Accutron Watches, which reported:

How An Accutron Watch

Helped Me Set The American Record
For The Fastest Single-Handed Sailing
Across The Atlantic

—followed by the details of this saga.

It is important that proof be available for any factual claims made in
behalf of the product.

Before Closing . . .

We are now in the homestretch. We still have to face the fact, how¬
ever, that a person who has been favorably impressed by the product may be
inhibited from buying it for any of a number of reasons.
Berelson and Steiner speak of:

. . . common ambivalence toward the purchase of an expensive item

(cost versus desire), especially in the case of luxury items. Repeated
approaches (window-shopping, inquiries, price haggling) often stop
just short of purchase—perhaps because the pain or guilt associated
with the expenditure rises more sharply as the point of commitment
is approached than does the attractiveness of the item.3

To meet such attitudes, advertisements often seek to rationalize purchases by

offering justifications, as in these instances:

A North Star Blanket will cost you between $25 and $80. The best things
in life are frequently expensive. And who deserves it more?
(North Star Blankets)

Go ahead. Spend the extra $2. It’s Christmas, isn’t it?

(Chivas Regal Whisky')

The closing passages may also be devoted to removing doubts or

prejudices against the use of such a product:

3 Bernard Berelson and Gary A. Steiner, Human Behavior (New York: Harcourt
Brace Jovanovich, Inc., 1964), p. 274.
 Concentrated Janitor has no phosphates and is biodegradable so it will not
pollute water.
(Janitor in a Drum Cleaner')

Action

The chief action that many national advertisers hope their ads will
inspire is a strengthening of the reader’s determination to buy, or continue
buying, the advertised product. But as a product gets more costly and calls
for inspection and demonstration, or for greater explanation (which can best
be done by a salesman), there are a number of suggestions that may spur the
reader to take the next step toward purchase and do what the advertiser hopes
to have him do. Among these are:

Visit a showroom for a demonstration:

See it in action at your Westinghouse dealer’s.
For location of your nearest Kelvinator dealer, telephone free
800- 343-6000.

Send for further information or sample (usually a lead for a salesman) :

Send for free 24-page booklet containing sample pages from the Book
of Knowledge.

Invite representative to call:

Call your local Gold Band Rock Wool Applicator for a free demon¬
stration.

Mail in order or coupon:

Whenever a direct order is sought (in direct-response advertising).

Sometimes two methods are combined:

Visit your dealer or send for booklet.
Look in the Yellow Pages for your Kitchen Aid dealer. Or send the
coupon.

Since the chronic foe of all decision making is inertia, the final words
of the advertisement may urge the reader to do something now, preferably
with some advantage for doing so:

Try this recipe tonight and delight the family.

Mail coupon now and get extra bonus offer.

• • •
The foregoing represents the structure of copy when a full selling
story is to be presented. But many advertisements do not require amplification
and proof to make their point; they can tell their story tersely, as in the case
of the accompanying Arm & Hammer advertisement, which is the total
substance of a newspaper ad occupying five-eighths of a page. But if an ex¬
planation of a claim is called for, and proof is needed to establish its validity,
the foregoing structure will be helpful: Promise of Benefit—Amplification—
Proof—Action.
 Give your kids a gift for their future.
Clean water.

Arm & Hammer Laundry Detergent. It’s free of water-polluting phosphates.

A Short Copy Ad

Some advertisements can tell their story in a few words.

346
New Westinghouse
Heavy Duty 15 washer
engineered
to prevent c
repair bills
Next time your automatic quits and you're left with loads of dirty laundry,
don’t go to your neighbor’s... Go to your Westinghouse dealer instead.
He now has a new heavy duty washer engineered to avoid washday
breakdowns and prevent annoying repairs.

Proof: tested 138,000 hours

new trouble-free transmission From its porcelain top right down to its massive steel
It’s half again as large as those found in other bottom, this new “Heavy Duty 15 ’ has been
automatics. And the only one designed for heavy checked, re-checked and tested-for 138,000 hours-
1 duty washloads. All its working parts are tested to minimize the chance of costly repairs. So don’t worry
and completely checked. It should actually about giving it too much use. It’s built for extra
last twice as long as the transmission found in long life. Se'c it in action at your Westinghouse dealer's.
I ordinary washers. Westinghouse engineered it that
/ way to minimize the chance of costly repair bills.

new vibration-free suspension system

Take a look at that heavy duty suspension
system securely bolted to its massive steel base.
No shimmy, shaky antics here. It’s designed
to take the strain of heavy family use, and to
prevent vibrations caused by
S®!4 extra-heavy washloads.

new Giant-Action agitator

Its special built-in ramps pull your clothes
i deep down into the center of the tub. While the
L agitator moves backward, the ribbed basket
moves forward creating a double-cleaning
action unmatched by any other washer.

Big 15 pound capacity

To handle today’s big washloads, you need a
1 jfjTuV solid, work-loving automatic washer like the
* F 'new Heavy Duty 15. It’s designed to tackle
any load from a big 15 pounds to the smallest
P ... family size. Year after trouble-free year.

You can be sure if it’s Westinghouse

A Long Copy Ad

To sell some products, advertisements must tell a complete

story, as did this Westinghouse washer ad, analyzed above.

347
 348 The Style of Copy
Creating
the
Advertising Advertisements, like people, have personalities all their own. Some say what
they have to say in a fresh way. They make an impact. Others, trying to say
the same thing, are dull. You may be polite to a dull man, but no one is
polite to a dull ad. You just pass it by.
Up to now we have been discussing how the building blocks of copy
are put together. We now discuss how to lift what we have to say out of the
humdrum by the way we say it. That’s style.

The copy approach. The creative essence in writing copy is to see a

product in a fresh way; to explore the possible effects of the product upon
the reader; to explain things in a way that causes the reader to view the product
with new understanding and appreciation.
Most advertisements end by asking or suggesting that the reader
buy the product. The difference between a fresh advertisement and a dull one
lies in the approach to the message at the outset of the advertisement.
The lens through which a writer sees a product may be the magnifying
glass of the technician, who sees every nut and bolt and can explain why each
is important. It may be the rose-colored glasses of the romanticist, who sees
how a person’s life may be affected by the product. Therefore we speak of
approaches of ads, rather than types of ads. The chief approaches in describing
an article may be characterized as:

—The factual approach

—The emotional approach

The factual or rational approach. In this approach we deal with real¬

ity—that which really exists, to quote the dictionary. We talk about the
product—what it is, how it’s made, what it does. This approach calls for more
than a list of engineering specifications, unless the ad is talking to engineers.
It focuses on the facts about the product that are of most importance to the
reader, and then explains their advantages.
Here, for example, is the Goodyear Polyglas Tire ad. Note how each
set of technical features is followed by an explanation of its advantage to the
reader (set in italics by the author).

THE INSIDE SECRET OF THE GOODYEAR POLYGLAS TIRE

ITS THE POLYESTER CORD BODY

You see it here—it’s the very heart of this Custom Wide Tread Polyglas
tire.
What makes polyester unique is that it combines the strength of nylon
with the smooth ride of rayon.
So you get a tire that softens the hard knocks—and rolls over the bumps
while absorbing the shocks.
 TWO TOUGH FIBERGLASS BELTS 349
Copy
In this Goodyear Polyglas tire, we’ve securely bonded the polyester cord
body to two tough fiberglass cord belts—using a special polyester adhesive
known only to Goodyear.
These belts help to hold the rugged tread firm and flat on the road for
mileage and traction.

TRACTION, STRENGTH, AND MILEAGE

A polyester cord body, two fiberglass belts, a big wide tread—that s the
vital combination that goes into the construction of the Goodyear Custom
Wide Tread Polyglas tire.
As a result, you get a combination of advantages . . . traction, strength,
and mileage. And they all add up to value.

An interesting thing about a fact is that it can be interpreted in differ¬

ent ways, each launching different lines of thinking. Take, for example, a
fact like the date—Friday, January 15.

It is the day estimated tax payments are due (must get check out).
It is payday fnow you can buy that item).
It is the last day of midterms (hurray!).
It is someone’s birthday (call up).

Hence we see that a fact is not necessarily a single statement. It has

many facets. The most familiar example is that of the eight-ounce glass hold¬
ing four ounces of water, of which it could be said:

This glass is half full.

This glass is half empty.

Both statements are factually correct. The difference is in the interpretation of

the reality, and in the viewpoint they project. The skill in presenting a fact is
to present that aspect of it that means most to the person you are addressing,
and to translate it into his life experience.
For example, the Economic Development Department of Memphis,
Tennessee, ran an advertisement to encourage industries to move there. The
writer could have said:

Memphis—a city of 630,000

But he interpreted that fact, and said:

Memphis—city of manageable size

A Polaroid camera ad could have said:

Here is a useful gift

Sears reveals 7good reasons
to put a radio on your wall.

mm It’s out of the way '•It sounds good. 6# Its so easy to

Won't clutter up a table top, Its solid state, has a d-inch install, you don't even need
counter top or anything speaker, gets both AM and a screwdriver. Just take off
else. Wrho couldn't use more FM and has an electronic the covering from the
space? device to lock FM stations adhesive on the back, press
2« You can have in. Its easy to operate, too. it in place—and
mm
that's it.
music wherever you go, mm Seal’s sells it
because you can put this Which means you can get it
radio in any room; even at a reasonable price,
places you haven’t put a (Batteries are extra.) Avail¬
radio before ~~ a basement able through the Christmas
or even a garage. catalog or at any Sears retail
store. Drop in and play it
some time.

Sm It looks good,
as you can see from the
picture at the top of the
page. For a slight extra
charge, you can get a
MB cabinet to match your
wsianai
decor: Classic, Colonial
or Mediterranean.
3# Its so safe and
shock-proof you can use it
in a bathroom, dripping wet,
since it's battery-operated. New and Only Ot Sears
SEARS. ROEBUCK AND CO,

The Factual Approach

Here the advertisement presents the technical features of the Sears radio as the
reason for buying it.
 331
But the writer presented that fact in a new light: Copy

The gift you never stop ope?2ing

An advertisement for the John Deere snow blower could have said:

Blow heavy snow away quickly with a John Deere

Instead it said:

Blow away a blizzard before breakfast . . . behind a John Deere

This ability to present a fact in a meaningful way extends even to

classified ads. A man had a house for sale. He described his grounds this way:

Not too much grass to cut

A fact is no less a fact if it is described and interpreted from a fresh

viewpoint that stirs the reader’s imagination. Because of the many ways of
presenting a product, there is never an occasion to say, "There’s nothing new
to say.”
With that approach as a start, the rest of the ad flows along readily
enough.

The emotional or imaginative approach. In the factual approach, we

seek facts that are real, existent, demonstrable. But there is a world of values
that have no yardstick, that can never be weighed, that can only be experi¬
enced. People often buy products for the satisfaction and joy to be experienced
from their use. We cannot find these qualities by cutting the product apart
and seeing what is inside it. Rather we must look into the reader s life to
perceive how his life, or that of someone in whom he is interested, somehow,
somewhere, will be enriched through this product. That launches us on an
imaginative exploration of the emotional possibilities. We call this the emo¬
tional approach.
Here, as an example, we have an advertisement of a Suzuki motor¬
cycle, with enough technical specifications to fill many pages. Yet the motor¬
cycle was not presented as an engineering feat, but in this imaginative way,
describing its effect to the reader:

SUZUKI
conquers
BOREDOM

Life has always been what you make it. Excitement or just routine.
And the line between freedom and feeling trapped can be as simple
as two wheels.
 Salton Hotray
enables a woman to
do an unheard of thing
at mealtime.
Sit down. Every day at mealtime the American
woman becomes a ping pong ball.
Bouncing back and forth between the
kitchen and the dining room with remark¬
able speed.
Well, we think a woman shouldn’t act
like a waitress unless she’s paid to be one.
So we recommend every home have a
Salton Hotray electric food warmer.
It keeps fresh cooked food in a state of
suspended animation for hours. Tasting
exactly as it does when it comes out of the
oven or off the stove.
A woman need simply place her dinner
on a Hotray food warmer near or on the
dinner table. And serve her entire meal.
Without ever leaving the table.
And while no woman can afford to be
without a Hotray food warmer, any woman
can afford to buy one. They’re priced
anywhere from $7.50 to $59.50.
If you drop a line to Salton, Inc.,
521 East 72 St., N.Y. 10021, we ll send you
all the details about the Salton Hotray brand
of food warmer. For heavens sake, write.
As every husband has been pleading
with every wife, “Will you sit down and eat!”
HOT.AY AMO NOTABLE ABE TRADEMARKS REGISTERED IN THE U.S.R.O. RT SALTON. INC.. THE SOURCE OF THE FOOD WARMERS DESCRIBEO.

Available at: Abraham & Straus, B. Altman & Co., Blooming dale's, Macy’s, Hammachcr Schlentmer, Gimbels, Bamberger’s, stores throughout the country.

The Emotional Approach

This advertisement begins by discussing the effect of the product on

the life of the reader, before swinging into an explanation of the
Salton Hotray.
 Something like getting on a Suzuki and breaking away. Getting
out to see the rugged land you never see from inside your car. . . .
. . . It’s your life. And you can make it anything you like.
A phone call to your nearest Suzuki dealer can be a whole new
beginning.

Emotional approach backed by factual copy. Although a person may

become interested in an advertisement because of its emotional approach, he
may nevertheless want to know the specifics of a product before deciding to
buy it. Often, therefore, we have an advertisement whose approach to the
subject is emotional, but that swings into a factual portrayal, as in the ac¬
companying Salton advertisement.
Some of the most effective ads have been those with an emotional
headline and picture, backed up directly with factual copy, or else a factual
statement interpreted imaginatively, backed up by factual copy. We avoid
speaking of factual advertisements or emotional advertisements, but only of
ads using a factual approach or an emotional approach.

Slogans
The word slogan comes from the Gaelic slugh gairm, meaning "battle cry.
Today, a slogan is used as the sales battle cry of the advertiser, trying to im¬
press his main claim to its readers’ acceptance. The use of slogans as a tool of
copy has varied with the years. But it is still a potent instrument in certain
situations. It is useful in advertising a low-priced item (like chewing gum),
which calls upon no deep deliberation. It is useful for epitomizing the theme
of a campaign. It may be helpful in providing a corporate theme, telling the
public the service or standard the company represents.
Slogans seek to explain, exhort, extol. Most slogans fall into these
classes:

1. Describing the uses of a product:

For upset stomachs (Pepto-Bismol)
2. Suggesting the special advantage or importance of the product:
Once in the morning does it (Scope Mouthwash)
3. Suggesting the product be used:
Long Distance is the next best thing to being there (Bell
System)
4. Creating an overall uniform image of the company:
You’re in good hands with Allstate (Allstate Insurance)
Company)
5. Guarding against substitutes:
It’s the real thing (Coca-Cola)
 334 Slogans are also potent weapons in political campaigns, and in cru¬
Creating
the
sading for public causes. They are usually emotionally charged.
Advertising The way to create a slogan is not to set out to create a slogan; but
rather to discuss the most important theme of the product. In the course of the
discussion, someone with a keen ear will say, "That’s it; that’s our slogan!”

Elements of a Good Slogan

A slogan differs from all other forms of writing because it is designed

to be remembered and repeated over and over again word for word. This
makes it imperative that the slogan say something meaningful to the lis¬
tener. It should be short, easy to understand and to repeat. Rhyming helps:
A title on the door rates a Bigelow on the floor. Alliteration helps: Save the
surface and you save all. Parallelism helps: Total cereal watches your vita¬
mins while you watch your weight. Of course, brevity and aptness help, and
having the name in the slogan is most desirable, as in Close-Up is for closeups.
The purposes of slogans are as varied as the purposes of advertising
itself and should derive from the current advertising goals for a product.
Should the campaign theme for a product be changed to meet changing mar¬
keting conditions, its accompanying slogan can be placed to rest—The King
is dead; long live the King!

Reviewing the Copy

After the copy has been written, it may be well to review it with these ques¬
tions in mind:

—Is it arresting?
—Is it clear?
—Is it simple?
—Does it give the information that the reader would expect at this
point of decision making?
—Are all factual claims supportable?
—Is it believable?
—Does it deliver the message about the product it was meant to de¬
liver?

If a piece of copy can pass this test, it may do even better when we add visuali¬
zation to it, as we shall discuss in the next chapter.
 355
Review Questions Copy

1. Advertising copy, especially for a 6. What are the differences between

new product, generally has a basic the factual and emotional copy ap¬
structure. What are the elements of proaches ?
that structure? Many advertisements
7. The book speaks of advertising
do not contain all these elements.
employing an emotional approach
Can you explain? backed by factual copy. Can you find
an example?
2. What two major purposes can be
served by a headline? 8. Describe the situations where slo¬
gans are particularly useful tools.
3. Under what product or buying con¬
9. What are the five major types of
ditions is proof important in copy?
slogans ?
4. How many different forms of proof 10. List some slogans you remember
or substantiation can you find in from advertising and discuss why
current ads? you think you remember them.

5. Can you find examples that show: 11. From current advertising find and
(a) a news headline, (b) a selec¬ analyze the copy approaches used
tive headline, (c) a promise head¬ by two different brands of the same
line? product.

Reading Suggestions

Barton, Roger, ed., Handbook of Adver¬ Glatzer, Harold, The New Advertising.
tising Management. New York: New York: The Citadel Press, 1970.
McGraw-Hill Book Co., 1970. Higgins, Denis, The Art of Writing Ad¬
Bernbach, William, ''Some Things Can’t vertising. Chicago: Advertising Pub¬
Be Planned,” in Exploring Advertis¬ lications, Inc., 1965.
ing, ed. by Kleppner and Settel.
Norins, Hanley, The Compleat Copy¬
Englewood Cliffs, N.J.: Prentice-Hall, writer. New York: McGraw-Hill, Inc.,
Inc., 1970. 1966.
Burnett, Leo, Communications of an Ad¬
Ogilvy, David, Confessions of an Ad¬
vertising Man. Chicago: Leo Burnett
vertising Man. New York: Atheneum
Company, Inc., 1961. Excerpted in
Publishers, 1964.
Kleppner and Settel, Exploring Ad¬
vertising, p. 138. Politz, Alfred, "The Dilemma of Crea¬
Burton, Philip Ward, and G. Bowman tive Advertising,” fournal of Market¬
Kreer, Advertising Copywriting, 2nd ing, October, I960, pp. 1-6. Also in
edition. Englewood Cliffs, N.J.: Kleppner and Settel, Exploring Ad¬
Prentice-Hall, Inc., 1962. vertising, p. 157.

Dichter, Ernest, "Creativity Based on Reeves, Rosser, Reality in Advertising.

Facts,” in Exploring Advertising, ed. New York: Alfred A. Knopf, Inc.,
by Kleppner and Settel. Englewood 1961. Excerpted in Kleppner and Set¬
Cliffs, N.J.: Prentice-Hall, Inc., 1970. tel, Exploring Advertising, p. 124.
Flesch, Rudolf, The Art of Readable Schwab, Victor O., How to Write a
W-riting. New York: Harper & Row, Good Advertisement. New York:
1949. Harper & Row, 1962.
16
Visualization,
Layouts

VISUALIZATION
Whoever has leafed through the pages of a magazine, or scanned the
pages of a newspaper, has been aware that certain advertisements stood out
in a way that attracted his attention, while his eye just swept by other ad¬
vertisements. That difference, in getting attention or not getting it, is the most
critical moment in the life of an advertisement.
There are many elements that may cause a person to stop and look at
an advertisement. Among these is his interest in the product as a whole. If he
is seriously interested in buying something, he will be on the alert for all
advertisements dealing with the subject. But even for such products, he may
notice some advertisements and overlook others. The chief reason a person
looks at an advertisement is because it says something that interests him.
In the copy discussion, we paid much attention to interesting a person
in an advertisement through its headline. We now seek to relate that headline
with the visualization that helps project a whole concept.
To visualize an idea is to think in terms of pictures, and you don’t
have to be an artist to do that. For example, how would you visualize "golfing”?
Perhaps you might suggest showing a man teeing off. You might suggest a
twosome in a golf cart, or a golfer blasting out of a sandtrap. This is visualiz¬
ing, and it can be done without drawing a picture—just by describing it.
(Just for fun, how would you visualize "success”?) Having thought of a
visual way to express an idea, you can always transmit it to an artist verbally,
or with matchstick drawings, or in any way you can best express what you
had in mind. But the idea of what is to be drawn is the important thing in
visualizing.
Not all advertisements need a visualization. The message might be
expressed just in a few words that can be set in large type. Or the message may
be in the form of a long statement, in which case the only problem will be to
set it in readable type. But for those messages that can be enhanced by a pic¬
torial presentation, we explore visualization.

356
 In actual creative work, it is hard to say which comes first, the head¬ 337
Visualization,
line or the visual version; but that is not important—often they are created in Layouts
the same mental breath. However, since we have already discussed headlines,
we study here how a visualization and a headline might work together as a
basic unit. (In speaking of headlines here, we include those captions that
stand by themselves, and are not followed by supporting copy.)

Relating Headline and Picture

A visualization of an idea may relate to the headline in the following ways:

1. The headline and the visualization need each other to complete a
thought.
2. The visualization imaginatively dramatizes what the headline says.
3. The visualization literally portrays the product, people, or action
that the headline talks about.

The approaches above are not offered as a definitive classification of

visualizing methods, which is limited only by man s imagination, but as a
stimulus to thinking about pictures and headlines as a single entity in getting
attention to the advertisement.
Since this is a section on visualizing, we will let the exhibits on the
following pages do most of the talking.

Great for cleaning

barbeque grills, too!

No hard scouring with powder or messy steel wool. Just spray on Easy-Off.
Let stand as directed. Rinse and wipe sparkling clean. It s so easy!

You do not need full pages to do a good visualizing job, as

this Easy-Off oven cleaner ad reveals.
YOU HEAR ALL OF IT
ON A STEIN WAY
The headline and the picture need each other.

358
 U B

1(11
:

If you can see what’s wrong with this corn,

your standards are up to ours.
(Kernel rows too tight. Means ear of corn has overmatured. Kernels tough, gummy. Unacceptable for Dei Monte.)

The more you know

about corn,
the better for Del Monte:

It takes both the picture and the headline to complete the concept.
 tuai

Drive as far as you like for a week. $99.

We’ve created a special rate that’ll let you we have a special rate at most Hertz offices that’s
travel literally thousands of miles on your even better: The Hertz 747.
vacation at no extra cost. We’ll rent you an intermediate or standard
In most of our U. S. and Canadian offices, Ford or a similar sedan for a minimum of
we’ll rent you an intermediate or standard Ford seven days, for a weekend, or over a two-day
or a similar sedan for seven days for $99. You holiday for $7.47 a day and 10 cents a mile.
can drive as far as you like without paying us a Insurance is included, gas is not. (Since the $99
penny over the $99 as long as you return the car and 747 rates are not available at all Hertz
to the city from which you rented it. Insurance is locations, call us for details.)
included, gas is not. If you’d like some suggestions on what to
If you rent the car in Florida or in do with the car once you’ve got it, we’ve motoring
California, the rate is the same, but you can and touring guides for almost every
return the car to any city in the state. part of the country.
And regardless of where you rent, if you want to No matter which rate you
pick up the car in one city and leave it in almost choose, the company comes at no
any other, we have a plan to cover that, too. extra cost.
Our $99 rate is an excellent deal if you’re
going more than 500 miles. If you’re driving less, You don’t just rent a car. You rent a company.

The picture is a dramatic visualization of the headline.

360
 It’s a lot easier to do push-ups
when you’re 25.

It’s easier to get life insurance, too.

Another nice thing, it’s easier to pay for more for family protection in many ways.
because, as a young man, your premium is lower. Think it over, young man, then get in touch
And best of all, when you start young you with your New York Life Agent.
get more years of satisfaction know¬ He's a good man to know.
ing you are providing financial secur¬ New York Life Insurance Company
ity for the ones you love at the time 51 Madison Ave., New York, N.Y. 10010
they need it most. Life, Group and Health Insurance,
Remember, he who hesitates pays Annuities, Pension Plans.

For a happier life

The picture, with its headline, imaginatively interprets what the copy headline says.

361
 , i

in
to feed your camera
this weekend.

FILM
FOR
COLOR
PRINTS

m CARTRIDGE
20 EXPOSURES
Islpi

Kodacolor-X

Pick up several rolls of your favorite kind of Kodak film

at your supermarket. And have a memorable weekend.

J'.odak makes your pictures count.

Another advertisement built on an imaginative interpretation of a

factual statement: "Be sure you have enough film this weekend.”

362
 Warm is going
barefoot in January

The colder it is outside, the more you need the need it. Gas heat is thrifty. And gas is the clean
gentle, even warmth of clean gas heat. Gas heat that doesn’t dirty the air indoors or out.
heat makes you feel cozy and taken care of. It helps you have a clean, comfortable home
No cold spots and it’s always there when you -and a cleaner world for babies to grow up in.

Gas, clean energy for today and tomorrow

' •' * AMERICAN GAS ASSOCIATION

The factual advantages of gas heat are imaginatively presented in the

headline and illustration.
363
 New Max-Pax Ground Coffee Filter Rings, Great tasting coffee in a throw-away filter.
it'sricw!C.j roiSKl colt tip pocked-lo sts * hi strength vPtt lice
own filter/iii; Max-Pas filter actually And with Mai-Pairtbere’s no #s*»
traps gteppdsaiMi seoiiTteni that cati spring, no spiliinipjoniwigy^ grounds-to
make coffee taste bitter. St > every cup or dean up. AitfirPaiilA twsttlpow
Max-Pas tastes great. Right clown to the m fittest wov
ixtttoi'B oft.fee pot,. The new Max-Pax Ground
just.put one or more filter rings in your Coffee Filter Ring.
regular coffeepot and perk, Each nng
makes about 4-P cups of coffee, cteperrdkig

When the product represents something newsworthy, especially if it looks

different, the product itself can provide the visualization idea.

364
100% was v ah le
if ^
t
: '\ ■

Which means its

immersible. You can put
this GE coffeemaker
completely under water.

bottom/
and out. It's
way to get a
clean pot and
good coffee.
Which is reason
enough to own.
There are others.
A GE coffeemaker
makes up to nine - ^
delicious cups. And
once the coffee's
ready, it stays piping
hot. There's also a gauge r
that tells you how much
water to use. And how
much coffee's left. It’s called
"Peek-A-Brew.”* Sort of
built-in accuracy.
General Electrics 100%
washable coffeemakers
also come to you accented
in avocado, harvest or white.
There's more to our
coffeemakers than just
a good cup of coffee.

GENERAL® ELECTRIC fffit '

•Registered trademark, a! the
General Electric Company

The purpose of this illustration is to attract every woman who has ever used an
electric percolator.
What you should know
First, what are radial tires?
They’re very different from the bias-ply tires
you’re used to. Compare the constructions shown
on the right...the direction of the body plies
especially. Radial body plies go straight (radially)
away from the bead. On other tire types they go
at an angle. It makes a big difference. RADIAL/BELTED BIAS/BELTED BIAS/PLY
TIRE TIRE TIRE

Which cord is best?

Rayon makes fine tires but lacks nylon’s strength.
Nylon is very strong but flat-spots when cooling.
Fiberglass is light, strong, doesn’t stretch —great
for belts and maybe someday for the body. Poly¬
ester provides the smooth ride of rayon with in¬
creased strength. Steel is most expensive, but
very strong and resistant to cuts — ideal for belts.

What are their advantages?

Quite a few. For example, the track marks above
show one big radial advantage at a glance: more
contact with the road.
Why? The radial ply sidewalls of the tireflex —
much more than conventional constructions. Re¬
sult-the tread won’t “lift off” on a turn-it stays
on the road. Your car has more stability at high
legal speeds; in passing situations; on slippery
surfaces. How much do radials cost?
Now add a tremendous advantage in mileage —
long, long mileage —30-35-40,000 miles and bet¬ Expect to pay $50 to $90 each depending on size.
ter. The belts hold the tread of a radial in a way They cost more than conventional tires, but on a
that limits the “erasing” action — so the tread lasts per mile basis, they’re cheaper. Driving 1,000
longer...additionally, the belt and radial plies miles on a standard-size bias-ply tire costs about
lower the rolling resistance, and you will get bet¬ $1.85; a radial about $1.60 per 1,000 miles. Your
ter gas mileage than on bias-ply tires. General Tire retailer can estimate comparative
mileage costs for your car.
Any disadvantages?
Frankly, yes. At low city speeds, you may feel
Who should buy radial tires?
the bumps a little more —but this is offset by the Putting radials on a car you intend to keep for
extra smoothness at turnpike speeds. a while will save money in the long run. But any¬
Also, because the radial must be built on spe¬ one interested in a smooth turnpike ride, excellent
cial complex and expensive equipment, radials steering control and cornering traction will also
cost more. want radials regardless.

Some ideas can best be visualized with the aid of charts and diagrams. In the above
instance they were used to advantage in this long explanatory advertisement.

366
about Radial Tires.
What you should know about the
The first polyester
General and steel radial de¬
livered for Detroit’s

Dual-Steel new prestige cars.

Radial There’s something else you should know about

Now that you our radial. It’s quiet. It should be, because it’s
know why a Calibrated®... a General Tire exclusive. It’s de¬
regular radial can signed for American cars, proved by our tests to
give you so much, be quieter-running than the most popular Euro¬
imagine what you’d pean brand.
get from our radial
with twostee/belts
in it. We’ve built our
new General Dual-
Steel Radial with the
uncompromising quality
of the famous General Dual-90?.. a combination
that lets us guarantee our Dual-Steel Radial
for 40,000 miles. Calibrated... computer-processed for smooth ride.

DUAL-STEEL RADIAL-/ WARRANTY INCLUDING

40,000-MILE TREADWEAR GUARANTEE Your General Tire retailer is receiving Dual-
If any new General Dual-Steel Radial tire in normal passenger Steel Radial tires now. Check him for your size
car use:
(1) wears down to 2/32" tread depth before delivering 40.000 ...and join our safe-driver customers for 40,000
odometer miles, purchaser will receive, at our option, re¬
placement credit or cash refund equal to the per cent of miles... guaranteed.
mileage not delivered.
(2) fails before wearing down to 2/32" tread depth (repairable
punctures excluded) purchaser will receive, at our option,
replacement credit or cash refund equal to the per cent of
tread depth remaining
Claim must be made by original purchaser to an authorized
Safe-Driver Discount Program
General Tire retailer, and credits or refunds will be computed on
the pre-determined price, which approximates the usual selling
for 16-21 Year Olds
price, shown on purchaser's Guarantee Record Premature wear-
out or tire failure resulting from improper mounting, running flat If you’re a 16-21 year old
or underinflated, defective rim, wheel misalignment, bad shocks
or brakes, or other similar defect, will void this Guarantee. Guar¬ driver... or know one
antee not applicable to tires branded "Blem". _
.ask about the General
Tire safety-savings
discount program good
on purchase of tires, auto
service and accessories at your
General Tire retailer now.

The safe - driver tire company.

T o create advertisements in terms of total concepts, learn to think in terms of a picture

which would present in a fresh way the words you have in mind, and to think of the
words that would best help a picture deliver your message.
367
LAYOUTS
We have discussed copy. We have discussed visualization. We now discuss
putting these together in an orderly form, called the layout of the advertise¬
ment. The term layout is one of the many used in advertising in two senses:
First, it means the total appearance of the advertisement, its design, the com¬
position of its elements; you will hear it said, "That is an attractive layout."
The term layout also means the physical rendering of the design for the ad—
its blueprint for production purposes. You will hear a man say, "Here’s the
copy and the layout," as he hands another man a'typed page and a drawing.
Right now we are talking about the layout as the overall design of an adver¬
tisement.

Here the story is told chiefly in picture

form.
The Layout Man as Editor 369
Visualization,
Layouts
Although the man who created the visual idea may be the same as the man
who makes the layout, the two functions are different. As a visualizer, he
designs the furniture to go into a room; as a layout man, he arranges it. As
a visualizer, he translates an idea into visual form; as a layout man, he takes
that illustration and all the other elements that are to go into the ad, and ar¬
ranges them in orderly form, similar to planning a blueprint.
Before he puts pencil to paper, the layout man—usually an art di¬
rector—reviews all the elements before him. His first task is to decide what is
most important. Is it the headline? The picture? Both? Is it essentially an ad
to tell a fast story with a picture and headline, or is it a long copy ad with the
illustration only an incidental feature? The importance of the element deter¬
mines its size and placing within the advertisement. The layout man picks the
most important feature and builds his ad around that.

Here the story is told chiefly

in copy.

Choose a pot like you

choose a husband.
Don’t get one you 11 have fingers. And we design
to replace every few our pots and pans with
years. Lookfor durabil¬ a smooth lip that curves
ity. Farberware makes under, so they couldn’t
its pots and pans of the possibly cut anybody.
finest stainless steel. So Our covers have rolled
they’ll be strong enough edges for exactly the
to last through years of same reason. And you
use. The bottoms are can even put Farber¬
aluminum-clad to give ware in the oven.
you evenly distributed heat with no Be sure you get something steady and
hot spots to bum what you’re cook¬ well-balanced. Good construction
ing. You wouldn’t want to keep is important. So we gently curve the
cookware around that didn’t do its inside of our pots’ bottoms and raise
job right. them slightly at the center. When
Avoid the flashy type, Farberware is you heat the metal, it expands a bit,
good-looking. But not too good- the center flattens down, and the
looking, if you know what we mean. aluminum-clad bottom lies securely
It’s handsome, but rugged and func¬ on the burner.
tional. So you don’t have to treat it Ask your friends what they think. But
with kid gloves for fear of marring only the ones with experience on
its great beauty. And it’s easy to the subject. Some of them may have
clean. Which makes Farberware chosen unwisely the first time.
easy to live with. They’re probably older and wiser
Look out for the troublesome kind.We now and know about Farberware.
were brought up never to do any¬ One thing they’ll tell you for sure.
thing that would harm a lady. So we No matter what the old song says,
use a material for our handles that you won’t find a million-dollar baby
won’t retain heat and bum delicate in a 5 & IOC store, farberware*
 (Left)
An advertisement that tells its whole story quickly. The copy is

ttfs tough most important, the illustrations supportive——telling what the

ad is all about.

on your
beard.
(Below)
Picture, headline, and copy get about equal attention in this ad¬
vertisement, based on a factual approach (accuracy) interpreted
in fresh, human terms. Observe the simplicity of presentation and
the dramatic touch of having the watch band set on a slight diag¬
onal, with a difference in the shading of background.

HAVE YOU BEEN LIVING

ON BORROWED TIME?
With a dishonest watch
you go around begging
people for the time.
Trying to spot a clock.
And getting dirty looks
from the lady sitting next to
you, when you were only
trying to see her wrist.
But with an Accutron®
watch you mind your own
business.
It doesn’t have a main¬
spring or a balance wheel
that can make ordinary
watches fast or slow.
It has a tuning fork move¬
ment that’s guaranteed
honest to within a minute a
month*
So never again will you
have to beg anyone for the
time.
Or try to spot any clocks.
And though you may still
get dirty looks from the
lady sitting next to you, it
won’t be for staring at her
wrist.

ACCUTRON BY BULOVA
The faithful tuning fork watch.

Shown: Accutron "263". Combination brushed and polished stainless steel case Applied silver markers. Sunray silver dial.
Grey napped strap with silver lame insens. $125- Ask your dealer to show you the many other styles from $110.
•Timekeeping will be adjusted to this tolerance, if necessary, if returned to Accutron dealer from whom purchased within one year from date of purchase.
 371
Getting Meaningful Attention Visualization,
Layouts
Every advertisement in a publication is in direct competition for attention
with every other advertisement and with the editorial matter.
It is axiomatic in advertising that a person has first to pay attention
to your advertisement if it is to be read. Many sins have been committed in
the name of this oversimplified directive, because you can use an odd device
or freak drawing that will catch a person’s eye—long enough for him to dis¬
cover that it was only a lure to get him to read something of no concern to
him. The real art in getting meaningful attention to an advertisement is to
say something significant to the reader, and to do so with words or pictures
in a striking way. The attention will then be directed to an idea involving the
reader; it is not merely an optical trick that leads to resentment.

Composing the Elements

A layout consists of parts. A layout man thinks in terms of these parts as the
main illustration, headline, copy, other illustrations, trademarks if needed.
The skill is to assemble all these elements into one pleasing arrangement. Here
are some guides in the creation of a layout that may be helpful.

Unity. All creative work begins by seeing a subject as a whole unit;

a face is more than eyes and nose and mouth; it is a complete expression of
personality. A man smiles not only with his mouth but with his eyes. Thus a
layout must also be conceived in its entirety, with all its parts related to each
other, to give one overall, unified effect.

Balance. By balance, we mean the relationship usually between the

right-hand side and the left.
When objects to the right and left of the vertical center of the page
are of equal optical weight and placed opposite each other, the balance is
called formal balance. This balance is the easiest to secure. It makes the easiest
reading. It tends to be static.
In informal balance, the objects are not arranged so that the right side
of the page is the same as the left side; the objects are placed seemingly at
random on the page, but in such relation to each other that the page as a
whole feels in balance. Informal balance is more difficult to attain than formal
balance, but it can prove more interesting.

Flow. We speak now of that quality in an ad that causes the reader s

eyes to flow naturally through the advertisement. In formal balance, that is no
problem; he begins at the top and goes toward the bottom. But in informal
 372 balance, the art is to attract attention at the head of the page, and by having
CreaUlthe °ptical stepping-stones leading from there to the end, hold the ad together
Advertising and lead the reader through the copy. Flow may also be helped by the line of
direction of the artwork, sweeping across the page. It may be helped by gaze
motion, that is, having the people in the picture look toward or, perhaps
along with other elements of the ad, lead the eye to the center of attention.

How many green beans would you eat for'1,50?

From now through June I!,you can savejTK>ncy___
> " on Birds Eye 5 Minute Vegetables. j“~ refundom
Send us 10 labels from French or I
1 ■
| M«!to-.r.O.Bo*W0},K*ak&>*,m I
* Cut Green Beans or Mixed
m** i check one miii f

tables, and well send you $1.50. i j

^ you don't like beans or mixed ».
'vegetables, you can still save money. Send us 10 , o i ««jow to w»u t«m »? j
O ' , , tr». r’ 5I et 8f«u ty* ? MiooM VtgtMkln. I
labels from any variety or Birds fcyej ^<«$*■<» |
Minute Vegetables { >;ia f
md well send you $1.00. j j5S*S@
irdsEye 5Minute I *•;*> ■;'
Vegetables are all so j I
—y* j
TWiaSs* opwe mi.isnsaw U,»> i. t»» |

sv to fix, too. just five , iXGdM

* t t r I e* gi* vb*x*. *
, and a half j ^w***-**
of water j
So you can I
stop j .
thinking j
about how j
..
long theyll 1-
bke to cook and start thinking

Unity Through Flow

The plates of beans seem to be coming right to you, holding the

advertisement together.
 if you dont take care of this tooth, ^
the permanent one might not he so cute.
Somehow, a lot of people figure it doesn't really matter if
a "baby tooth"gets a cavity. After all, its just a little temporary tooth.
But it really does matter. First, the tooth is so small,
a cavity in it can be* a big problem. So, the- tooth might have to lx* pulled
Then, the space left by the- pulled tooth can cause
bad sparing of tlx- permanent teeth which cm affect anything from
your child's bite to his appearance.
So it makes sense- to take cate of those first little teeth
just like you would big teeth. With the right foods, regular checkups,
and brushing after every meal, with a good toothpaste.
We hope that toothpaste will be Crest.

H03.. c*mi ft&* Uw ftvh* ct*> QtiwX** rfaoay# Tftot $» id ^(0m «»rf > 'peeltffpfff »* wiifi mmd ejug* #lwi,
CtimndS «M», &»•«»# 7ft«»r«ww/t7C*. A«mw*ss<* (temiii towMn'w*

Gaze Motion at Work

Everything in this ad focuses on the baby’s head.

Formal Balance Informal Balance

Color in Advertising

With most full-page advertisements in magazines these days in color, as are

many half-page ones, there is a great pressure from the competition of other
ads—and from the advertiser’s own trade—to be in color also, for those ads
that can be enhanced by color. Yet while virtually all liquor advertisers were
using full color in the magazine advertisements, the makers of Jack Daniels
whiskey used black-and-white ads, in keeping with their rustic story. They
not only stood out in contrast, but saved color rates, and production costs.
Products in which color is an important part of the selling story clamor
for color reproduction—fabrics, carpeting, rugs, cosmetics. Color is eloquent
in picturing appetizing dishes of food. Color may be used for the sheer beauty
" with which it brings attention to an advertisement.
Color talks its own psychological language: To make a drink look
cool, there will be plenty of blue in the background; to make a room look warm
(for heating advertisements), there will be plenty of red in the background;
springtime suggests light colors, and autumn the dark tones. Thus a clue to
the choice of the dominating color may often be found in the mood in which
the product is being shown.

374
 Maybe ifyou spend a little more for die vegetables,
you can spend less for the meat.
For years, steak has been the hero of the Not when they dig into that zucchini Spanish
American table. But the hero has become a very squash and those carrot strips, and pearl onions Vegetable
expensive hero. and sweet red peppers in a special Birds Eye Medley
Birds Eye® International Recipe Vegetables orange-flavored sauce.
have a way out. Next time you serve them chicken All at once, your less expensive meal will
or some other less expensive (but nutritious) be as interesting as your more expensive meal.
cut of meat, serve them Birds Eye Spanish style And you won’t only be a good cook, you’ll
Vegetable Medley. be a smart cook.
The chicken dinner won’t be just another Birds Eye International Recipe Vegetables
chicken dinner. Japanese. Danish. Mexican. Spanish, or Bavarian style

Advertising Agency: Young & Rubicam, Inc.

Courtesy: General Foods Corp.

There’s nothing like color to make food look appetizing.

■

'

Then it’s too late. It’s much better to

put a Dixie Cup Dispenser.in your bath¬
room before there’s an accident. Nobody
ever cut themselves on a Dixie Cup
(Try stepping on one and see what hap¬
pens.) And nobody ever caught a cold
from one either. {With Dixie Cups you
don’t spread germs, you throw them
away.) Today, more and more families
• are pu
eklvt putting Dixie Cup
tUUg jL/lAlvv v Dispensers in
- 1 their bathrooms. And
that’s no accident.
ni/*.a■ N’lormt.s instardlv . With
self-adhesive tape. ©HCSJauf Cm«

A whole story is quickly told in this picture, enhanced by the deft use of color.
 375
Layouts for Small Advertisements Visualization,
\/ ^
Layouts
Small advertisements refers particularly to one-column ads up to four inches
deep, which will be found in many magazines and with which many businesses
have been built. Successful small advertisements usually have a strong promise
in a selective headline. The eye takes in all of a small advertisement at one
time, so that a liberal part of the space is used merely to get notice. A small
advertisement is not a big advertisement reduced; it is created by abstracting
the one or two most essential elements of a big advertisement (if one had
already been created) and emphasizing one of them.

and
DOES MORE JOBS
IN LESS TIME way
Thi rid
hindii with
tht black head
—ixduslvily
Plumb.

You’ll
find many
uses for this
Plumb hatchet.
It chops, pounds,
pulls nails and cuts.
• Sneak up on the deep, dark pools
Handiest of hand tools,
it does better work faster, where the big ones hide. It’s easy in
jn the home or work shop. a perfectly balanced Old Town Ca¬
noe. This modern birch-bark is built
HAMMERS for sportsmen. Steady and strong,
HATCHETS yet light to carry. Made with Oid
AXES Town skill to last for many a moon.
FILES FREE CATALOG shows all kinds of canoes
for paddling, sailing or outboards* Also
outboard boats, including big al] wood
family boats. Sailboats. Rowboats* Din*
ghies. Address Old Town Canoe Company,
562 Elm Street, Old Town, Maine*
T° cr
WOST
FREE BOOK for
0Vn°hon
OUTBO**0 outboard skippers
This 64-pogo handbook, written
by a staff of experts, tells
you all you need to know to
get the most out of your out¬
board. Neat Nautical Tricks,
• How to hove
Safety Afloat, Navigation,
more fun afloat
How to Select a Boat and
• Howtomakean Motor, many more subjects.
'eggshell landing' Practical, authoritative, gen¬
• How to rig re¬ erously illustrated. Write for
mote controls free copy now: Dept. SI49,
• Trouble shoot¬ Scott-Atwater Mfg. Co., Inc.,
SAFE AS A HAND
ing made easy Minneapolis 13, Minn. SAW
JUST GUIDE IT!
Patented
More like magic than
No Limit to
any tool you ever saw.
Length of
Imagine an electric
Stock it
scroll saw only slight¬
Will Cut.
ly heavier than a
Saws to
hand coping saw . . .
Center of
a tool that takes no
19" Widths.
effort to run, no pres¬
28 Lines to 50 sure to feed.
at any angle—on big
Works It’s fast . . .
Cuts on an av¬
assembly jobs or on erage of 1 ft.
the tiniest piece you per minute up to '3/4" me¬
can hold in your fingers. dium hard wood. Operates
Advertisements of this size are the backbone of many advertising Runs 7200 strokes a minute
... so fast the blade seems
on
cycle
110-120 v.
alternating
50 or 60
curre >t
to stand still. Sturdily built MONEY-BACK GUARANTEE:
campaigns. You have to think in terms of copy and layout at the .
, . . only two moving parts
. . never needs oiling.
Buy (Vloto-Saw
dealer.
from your
]f he cannot supplv
Easily cuts intricate designs you, send only $5.85 (check
—so smooth it eliminates or M.O.) and we will ship
same time. Notice the strong promise headlines, the variety of sanding.
man, a
Novice or crafts¬
thrill awaits you
postpaid; or send only $1
now, and pay postman bal¬
•when you get a Moto-Saw ance plus postage. Your
illustrative effects used, the ingenuity and simplicity of layouts, in your hand.
of satisfied users.
Thousands MONEY-BACK if not delight¬
ed af er 5 days’ trial.
DREMEL MFG. CO., Dept. S319-D, Racine, Wis.
the clarity of typography.
 376 Well Conceived, Well Composed
Creating
the "Give a camera for Christmas" is the message of this advertisement, which interprets
Advertising a fact about a camera in a fresh way, under an appropriate picture of a child. Gives
an abundance of "catalogue copy" in a well-organized, readable way.

The gift you

never stop opening.
With a Polaroid Land camera, it’s one set of goose and set exposures automatically—even for flash. Detach¬
bumps after the next. able camera cover and carrying strap.
The Model350. under $160.
Beautiful color pictures, a minute after you take them. How automatic can you get? Built-in electronic timer
Black-and-white in seconds. The Model330, under $80. “beeps” when your picture is perfectly developed. Takes
Just seeing how much camera you can give may be A lot more gift for a little more money. Built-in me¬ automatic time exposures up to 10 seconds. Electronic
a surprise in itself. chanical timer automatically tells you when your pic¬ shutter and electric eye. Single-window Zeiss Ikon
ture’s ready. Transistorized electronic shutter. Precise rangefinder-viewfinder. Handsome all-metal body with
The Color pack II, under $30. triplet lens that can use optional filters. Double-image brushed chrome finish.
Beautiful color pictures in a minute, at a beautiful rangefinder-viewfinder for easy focusing.
price. Electronic shutter and electric eye for automatic
The Model 360, under $200.
exposures. Sharp 3-clcmcnt lens. Drop-in pack film load¬ The Model 340,under $100. The most self-sufficient camera in the world. Snap-on
ing. Built-in flash for 4-shot flasheubes. One of the most sophisticated cameras you can give electronic flash. (At 1 /1000th of a second it can stop the
for under $100. Takes indoor black-and-white shots action at a teenage party.) Recharges on ordinary house
The Model 320,under$60. without flash. Built-in development timer. Foldaway current. Electronic development timer. Triplet lens and
The most economical in our popular line of folding rangefinder-viewfinder. Four film speed settings. Han¬ Zeiss Ikon rangefinder-viewfinder. Four exposure
cameras. Coupled rangefinder-viewfinder lets you focus dles a whole list of optional accessories such as close-up ranges: Two color, two black-and-white.
as you shoot. Electronic shutter and electric eye read and portrait attachments.
Polaroid I.and Cameras
Different Types of Layouts Visualization,
Layouts

We mentioned earlier that the term layout also refers to the physical drawing
of the design of the ad, its blueprint. Layouts come in various degrees of
completion. They may begin with a series of thumbnail sketches. The best
ones are selected for the making of roughs (full size), showing the placement
of the major features, several different rough layouts being made as experi¬
ments to see which arrangement is most satisfactory. The one selected is then
carried out in more definite and precise form, called a finish or comprehensive
layout. All these layouts are designed to get the approval of someone up the
corporate ladder, and much depends upon the experience of that someone as
to how far up the scale of finality a layout has to go before the ad is approved
for production. (See pp. 381-397.)

A good cook’s^
guide to better cooking.
For all 7 different blade types, they've
CocTfiou - ref Aik- cookfno. — hssb^cotT^ engineered special grinds and edges to
very fashionable again.
make each Ekco Hint knife as perfect a
That nwanS'r of ccattse. a good nook
tool as. possible,
car? no longer rate ott h&arty- -rneals --
They ail have one thing in common
A Well-organized Ad ymSm -expected to serve creative nutri¬
tious meals.
They’re crafted {that’s the right word)
from hioh carbon vanadium stainless steel
Which makes us tie lighted. Because
That's so they hold a keen edge and so
the more serious you get about cooking,
Showing how a lot of copy the more likely you are to buy Ekco Bine
they won't rust or discolor
p0lt pans and knives. : is, -ad ester that Flint cookware ss
with numerous pictorial Perhaps that sounds immodest. rite:
-.corstefer the following.
durable, That's mors than a claim. It's

A place of Ekco Flint cookware vvrfi In fact, we guarantee Ekco Hint cook
elements can be organized actuate help you do « better job at cocte- ware ter Interiors against detects Our handles are carved, instead of
ing. The food will taste better and be materials and workmanship. I he same is molded. And they're grooved to give you
in a way which invites better for you. true for our Flint cutlery for your money
back, test return to Ekco
a firm grip even with wet or greasy hands.
That's partly because every Flint pot What's more, our handles are made
Hint stainless steel cookware wont
reading. Note the use of a and pan is made with
three layer® of metal. chip or crack or discolor. The handles
from Pakkawood® real wood treated so
make u impervious to burns, stain*, acids
'rise outside layers (the stay fight The lids sit snugly year after and even dishwashers.
selective headline to reach ones you seel we One mote thing about our Ekco I lint
gleaming stainless steel kna stainless steel is one of the easiest
knife handles. They have a riveted tang
women interested in cook¬ E for easier cleaning
and greater clttrabllfly
things there is to keep sparkling.
Of course, there's move so good cook
(shot's the part of the blade lb*sl extends
into the handle). With inferior knives, the
The Ittslde layot ing than cooking. Fixing meals calls tot
ing, narrow columns of (which you can't sec) _ a Sot of cutting, slicing, pirellnq. chopping,
tang is driven into the handle, JH|
like ’ a nasi, and usually comes S|i
is carbon steel. It's a '-1 coring, boning and'or trimming.
loots. A riveted tang holds pi
type to make long copy radiant heat, core that distributes the heat And no single knife can do them all
forever. |L—
arsd cooks food evenly, aft around. %iks A- we said in the beginning; m
readable. Note also the an oven. guide mi of Wf
The special rims on Ekco Hint cook-
ware also crmfobute to better tow J g it a/i i{) enlightened self-interest. . . ■
Which leads us to this final. ■
position of the pots and When you lower helpful word. Both s»« cookware fl|
heat, a vapor seal »■ and our cutlery :re available in |||
knives. The pot handle formed between tfie-
rirn attd the cover.
money saving sets or it' open
stock.
You can then cook
. leads the eye upwards, vriih less water and. fe ■: fed ill IL For the name of your nearest
Ekco deafer and our free book j j
lower heat. lets "How to Carve” and '“How |j 1
holding the layout to¬ This is helped along So Ekco cullers design special Hades
fot each lob - each properly Paianceo
to Choose and Use Cookware.' cull free
bv Rite's wit bastes Mds They let foods 800-631-1972 800 962-2S03 in New
for that tab. Then they go a step anther.
gether. simmer in their own rich, natural itoces.
The result is. simple. With Ekco 1 sit'd
Jersey), Ask lor Operator fwe
Or write as. care of Dept. NGC
you don't boll oway- the vstantsrts Stef
fiavor you pay lot.
EKCO
) W o vV 5 VT-V.
• FjTtokifte Vi&'k- Hivtaats H "U
 378 When a layout is ready for production, a duplicate will be made and
Creating
marked up with instructions for the typographer, to whom it will be sent
the
Advertising along with the copy to be set in type. It is also used as a guide for ordering
plate sizes. This layout is referred to as the mechanical.

The Artist’s Medium

The artist’s medium refers to the tools and background material an artist uses
to render his illustration, the term medium being used in a different sense
than in speaking of an advertising medium (as TV or magazines). The most
popular artist’s medium used in advertising is photography. Other popular
ones are pen and ink, pencil, crayon, and wash. Advertisers will use different
artists’ media as a way of making an advertisement stand out, particularly when
most are using photographs. Sometimes art of different media will be used in
one advertisement. Perhaps a photograph will be used as the main illustration,
but for the smaller secondary illustration, pen and ink will be used for clarity
and contrast. The choice of the artist’s medium depends upon the effect de¬
sired, the paper on which it is to be printed, the printing process to be used,
and, most important, the availability of an artist who is effective in the desired
medium.

Trade Practice in Commercial Art Work

The creation of an advertisement entails two types of art talent: one, the
imaginative idea man who conceives the visual idea and makes the layouts;
and two, an artist who does the finish art of the illustrations needed. In the
larger advertising centers, agencies will have on their staffs art directors and
layout men who handle internally the visualizing and layouts. They will then
call in one of the many free-lance artists available in that city to do the finished
art. In the case of a photographer, the agency will choose one who is best at
certain types of shots—outdoor or studio, for example; some photographers
are specialists on food shots, or style pictures, or whatever the agency seeks.
For other illustrations, the agency has its choice of artists who are particularly
good at some specialty such as men’s styles, women’s styles, furniture, ma¬
chines, cartoons—name your needs and there will be some artists who are
particularly good at it.
In smaller cities, agencies try to have on their staffs artists who are
versatile enough to handle most finish art work for their clients’ needs. De¬
partment stores, which have a flow of uniform kinds of work, will have their
own artists on the premises.
 sa'I’s1- ' ‘ ' - -
>. i^.-:*. Jr..--*.

^■~'-'.*-*-i ~**f-±4-j- o«^*i2V> O- c***ijr la, , —— .. .. -

t ^SP4*S‘;53'^£-<*-y^#-«!»••«>«» jaw* £5' j6&' -tf3*?1 %; <£ vO^sr??5' SC <

Crayon

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MM
.__«)«© <a»

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Pen and Ink

Different Media
 380 Legal Release
Creating
the
Advertising Before anyone’s picture can be used in an advertisement, his permission in the
form of a written legal release must be obtained. This is necessary even though
the person may have been paid to pose for the picture. A release is also needed
to use a person’s name in an advertisement.

Criteria for Layouts

In looking over the final layout, we ask these questions:

—Is it arresting?
—Is it clear?
—Is it orderly?
—Is the most important idea given the most important attention?
—Does it invite reading?
—If the trademark is needed to identify the product, is it sufficiently
visible?
—Does the layout leave the desired impression about the product?

If so, we are ready to put the ad "into production."

 Rough to Fmtsh

Military Book Club

Courtesy: Doubleday & Co., Inc.

Advertising Agency: Altman, Vos & Reichberg, Inc
 ■
.............r«rn„.;■■■■»».1.

m wm

■v *% y

■
■
LA; "you _
i

U^v« -YU ^uo^-H^Uvt M Ite^7<w (

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The writer’s original rough idea layout

382
Here are the books that will help yon remember and understand
World War II - - the 5 most momentous years of your life

l
i

The comprehensive layout made after several intervening roughs. Note change in
headline and arrangement of books.
383
Here are the books that will help you remember
and understand World War II—the five
most momentous years of your life.
P earl Harbor. D-Day. Anzio. Guadalcanal. Mid¬
way. Whether you were in uniform or too young
to serve, the books on this page illuminate the war
years as no other books can.
Would you like to know what it was like to fly a
nighttime raid over Berlin? Read Flying Fortress.
Want to discover why Eisenhower refused to
let Patton push on to Berlin? Read History of
the Second World War. Are you curious to
see Admiral Yamamoto’s plan to bring Amer¬
ica to its knees? Read Two-Ocean War.
If you want to know all the bluffs, blunders,
and triumphs of WWII—and WWI, and all the wars
in history—join the Military Book Club. You'll get
books you won’t find in any other book club, at
savings of 30% below the prices of publishers’ edi¬
tions (plus shipping & handling). Take us up on our
offer. Four books—worth up to $50.00 in publishers’
editions—yours for 98?, plus shipping and handling, with a
trial membership. How can you lose?
Military Book Club, Garden City, N.Y. 11530
8755. Flying Fortress. Ed¬ The Military Book Club
ward Jablonski. The B-17s
U S. Navv Photo above:
and the men who flew
them. 400 album photos.
invites you to take USS WEST VIRGINIA and
USS TENNESSEE burning after
Pub. ed. $10.95 Japanese attack on Pearl Harbor.
8714. The Two-Ocean War.
Samuel Eliot Morison.
Story of U S. Navy in ac¬
tion from 1939 to V-J Day.
Pub. ed $15.00
1701. History of the Sec¬
Any 4 The MILITARY BOOKCLUB, Dept. AL-289, Garden City, N.Y. 11530
Please accept my application for membership in the Military Book Club and
send me the 4 books whose numbers I have printed in the boxes below. Bill
me only 98C, plus shipping and handling for all 4.
ond World War. Basil Lid¬
dell Hart Every major
battle on land. sea. in the
air. Pub. ed. $12.50
8904. Wars of America.
books About every 4 weeks, send me the Club's bulletin, Battles and Leaders, de¬
scribing the next Featured Selection and a variety of Alternate choices. If I
wish to receive the Featured Selection, I need do nothing; it will be shipped
to me automatically. Whenever I prefer an Alternate, or no book at all, I will
notify you by the date specified by returning the convenient form always

for 98e
Robert Leckie Colonial
wars to Vietnam. 2 books,
provided.
countsasone. 1 .OOOpages.
I need take only 4 Selections or Alternates during the coming year, and
Pub. ed. $12.50
may resign any time thereafter. The prices of books offered will average
30% below the prices of publishers’ editions, plus a modest charge for ship¬
8987. The Supreme Com¬
mander. The War Years of if you join now and agree to accept only 4 ping and handling.
General Dwight D. Eisen¬ selections or alternates during the coming year. NO-RISK GUARANTEE: If not delighted, I may return the entire introductory
hower. Stephen E. Am¬ package within 10 days. Membership will be canceled and I will owe nothing.
brose. Pub. ed. $10.00
3590. Inside the Third 8730. Mao Tse-Tung on
8854. Iron Coffins. Her¬
Reich. Albert Speer, " I Guerrilla Warfare. Transl
bert A Werner German
recommend . . . without by Gen. Samuel B Grif¬
U-boat captain’s memoirs
reservations," N.Y. Times. fith Communist "hand¬ Mr.
of submarine warfare in
W.W II. Pub. ed. $7.95 Pub. ed. $12.50 book." Pub. ed $4.95 Mrs._
2428. The Rising Sun. Miss (please print)
x$995. The Battle for North 8961. The War in the Air.
Africa. John Strawson The Royal Air Force in John Toland Inside Im¬
perial Japan. Over 60 rare
Address.
Why did it take 3 years? World War II. Anthology FOR OFFICE USE ONLY
Illus Not avail, in Canada ed. by Gavin Lyall Illus. photos. 2 books, counts
Pub ed. $795
9019. The First to Fly.
Aviation's Pioneer Days.
Sherwood Harris
’ birdmen" to WWI death
96
Pub ed. $7.95
8813. Strategy. 2nd Rev.
Ed. B H Liddell Hart.
Classic book on warfare.
Strategists from 490 BC
as one Pub. ed. $12.95
8912. Fiasco: The Break¬
out of fhe German Battle¬
ships. John Deane Poller.
1942 "Armada" succeeds.
L City-

State_Zip-
State
Members accepted in U.S.A. only.
1-M13
machines Pub. ed. $7.50 to Hitler. Pub. ed. $10,00 Why? Pub. ed $6.95 _ _
The Military Book Club offers its own complete, hardbound editions, sometimes altered slightly in size to fit special presses and save members even more.

The finished advertisement embodying changes made in comprehensive layout.

384
 Volvo

Courtesy: Volvo, Inc.

Advertising Agency: Scali, McCabe, Sloves, Inc.
 The idea layout—rough but quite explanatory.

386
Carrying out a rough lay¬
out idea sometimes involves
more than art work.

387
ARE YOU IN THE MARKET
FOR A HARDTOP?
Every Volvo has six steel pillars holding up the roof. Each one is
strong enough, to support the weight of the entire car.
Of course, this kind of strength isn’t built
into a Volvo just so it will hold up
a lot of cars.
Volvos are built strong so
they’ll hold up a lot of years.
Exactly how many we can’t
guarantee. But we do know
that in Sweden Volvos are
of elev en

you’re in the

The finished advertisement.

388
 French Line

Courtesy: French Line

Advertising Agency: N. W. Ayer & Son, New York
 An artist tries different ways of expressing a mood

UAMU

390
there's a Frenchman frying to 9®*8U*-
f0&

WeAtKiiM-
 On the inside, we’re all French.
Lovers of life and food and fun. The way people
were meant to be.
Let out your Frenchman on an
uninhibited French vacation. Cruises that take
you where you want to go. But take you there
French. All the way.
And who but the French can delight
your senses with French cuisine (every meal a
feast). French service (legions of staff
to pamper you shamelessly). And especially
French fun (the liberated way to play. Outdoors
like the Riviera. Indoors like Paris).
A word of warning: once let out, your
Frenchman may refuse to go back in.

Transatlantic Cruise Vacations

The adventurer’s vacation package:
5 days exploring the world’s largest,
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Two ways to discover your own special
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Inside every American, 33 days indulging your sensual French self. While
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Mediterranean Cruises
The French way to savor the world’s
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Corsican Resorts
French fun ashore. Three beautiful hotels
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Is your Frenchman clamoring for release?
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branch Jluie
555 Fifth Avenue, New York. N.Y. 10017 Tel. 363-3940

i-—-i
Vocation Cruise Calendar
For the next few months, we’re mostly
transatlantic. Then we head to a second
summer.

Transatlantic Cruise Vacations

Depart New York: Sept. 4 and 18
Aug. 7 and 20 Oct. 2 and 16
If you can’t take the whole Vacation, at least
join us for the fun going over.
Same dates as above, plus Nov. 13 (which
also calls at Bremerhaven.)

Caribbean Cruises
The S.S. France from New York: Calls at
St. Thomas, St. Lucia, Barbados, Curasao,
Port of Spain, Fort de France, Nassau,
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13 days, 6 Ports—S445 up.
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The S.S. Antilles from San Juan: Calls at
La Guaira, Port of Spain, Fort de France,
Pointe a Pitre, and St. Thomas or St. Croix.
Departs every Saturday.
Nov. 8,15,22, 29, Dec. 6 and 13—7 days,
5 ports—$255 up.
Dec 20, 27—7 days, 4 ports—$295 up.

Mediterranean Cruises
March 20: New York to Naples and Cannes.
March 28: Cannes-to-Cannes 10 day cruise
to Yugoslavia, Corfu, Crete, Rhodes.
April 8: Cannes-to-Cannes 16 day cruise to
Sicily, Antalya, Izmir, Istanbul, Salonika
SAFETY INFORMATION: The S.S. FRANCE and S.S. ANTILLES, registered in France, meet International Safety and Naples.
Standards for new ships developed in 1960 and 1948, respectively, and both meet 1966 fire safety requirements.

The finished advertisement

392
 Review Questions 393
Visualization,
Layouts
1. What is the difference between sider to be excellent layouts. Ex¬
visualization and layout ? plain why you consider them excel¬
lent.
2. Name, and illustrate with examples
6. Discuss the particular layout prob¬
from present advertising, several
lems of small advertisements. From
ways in which the visualization of an
current advertising can you find three
idea may relate to the headline.
examples of small ads you consider
3. Find several examples from current to be excellent layouts?
advertising which you think have ex¬
7. Distinguish among the following
cellent visualization. Explain why
types of layouts: rough, comprehen¬
you consider the visualization excel¬
sive, and mechanical.
lent.
8. From current advertising find ex¬
4. Discuss the major guides to develop¬ amples of the use of three different
ing an effective layout. artists’ media.

5. From current advertising, find three 9. What are some of the questions to be
examples reflecting what you con¬ asked in judging the final layout?

Reading Suggestions

Art Directors of New York, Annual of Visual Efficiency of Advertisements,”

Advertising Art. New York: Reinhold New York: Advertising Research
Publishing Company, annually. Foundation, Inc., 1965.
Berrien, Edith Heal, Visual Thinking in Industrial Marketing, "A Lesson for the
Advertising. New York: Holt, Rine¬ Artist: Function of Layout is Simple
hart & Winston, Inc., 1963. as 1, 2, 3,” January 1972, pp. 21-25.
de Lopatecki, Eugene, Advertising Lay¬ Taylor, Robert C., and R. D. Peterson,
out and Typography. New York: The "A Textbook Model of Ad Creation,”
Ronald Press, 1952. journal of Advertising Research,
Diamond, Daniel S., "A Quantitative February 1972, pp. 35-41.
Approach to Magazine Format Selec¬ Turnbull, Arthur T. and Russel N.
tion,” journal of Marketing Research, Baird, The Graphics of Communica¬
November, 1968, pp. 376-383. tion. New York: Holt, Rinehart &
"The Measurement and Control of the Winston, Inc., 1964.
17
Print Production

There is something wonderful about the way in which typed copy, a

tissue layout, and a picture are transmuted into a finished advertisement repro¬
duced millions of times. This is the area of print production.
Just as an architect must be familiar with building materials and
methods in designing a house, so anyone concerned with the final appearance
of an advertisement should have a basic understanding of typography, the
principal typesetting methods, the major printing processes, and the means of
organizing production.

Typography

Typefaces

The first step in translating the headline and copy into type is the
selection of a typeface. Every typesetter issues a book showing the styles he has
to offer—all of which serve to baffle the uninitiated. The typefaces most used,
however, belong to one of three major classes: Old Style Roman, Modern
Roman, and Contemporary. A fourth style, Text, preceded the others his¬
torically, and is important because its features help to explain the others. A
fifth style, Script, is often useful for special effects.

Text Letters. The art of writing was kept alive during the Dark
Ages by monks who prepared ecclesiastical manuscripts with wide reed pens,
creating a style of lettering that we now call Text. When Gutenberg printed
his Bible, it was done in hand-carved letters contrived to simulate the manu¬
scripts. Although seldom seen today, except on proclamations, diplomas, and
other ceremonial announcements, Text is shown here because the way the
strokes are ended influenced succeeding type designs.

Old Style Roman. During the Renaissance, type designers sought

inspiration from the simplified form of lettering carved on the Roman stone
monuments. The monument cutters marked the top and bottom of all their
letters with a little bar called a serif, which is an important clue in type de¬
sign. Freehand versions of the old Roman letters were designed in the seven¬
teenth century by Claude Garamond, and in the eighteenth century by William

394
Caslon and John Baskerville. These designs have not only survived to be 393
Print
used today, but have given rise to many others in the same spirit, called Production
Old Style Roman, or just Old Style. The chief characteristics of Old Style are
that (1) there is only a slight variation between the thick and thin strokes,
and (2) the serifs are blunt, often oblique, a vestige of the Text style of
gracefully ending each letter.

Modern Roman. In the never-ending urge to create new typefaces,

Bodoni of Parma, and Didot independently in France, late in the eighteenth
century developed another version of a Roman letter, called Modern Roman,
or just Modern. It differs from Old Style insofar as (1) there is a decided con¬
G
trast between the thicks and thins, and (2) the horizontal serifs are cut sharply
as if by a pointed tool, rather than drawn gracefully by a pen.

Contemporary. A form of letter that is in widespread use today is

called Contemporary, because its designers did not seek inspiration from the
past. Its distinguishing features are that (1) the weight of the letters, with
few exceptions, is uniform throughout, and (2) the letters have either no
serifs at all (and are called sans serif), or square (or block) serifs. Contem
porary faces are also referred to as block letters.

Script. This refers to type designed to simulate the hand lettering

of an artist by pen or brush. Used mainly for headlines, slogans, title pages,
it is not good in small sizes for blocks of copy.
P.S.
Typefaces are often named after their designers. Type foundries give
their new faces names of their choice.
Even master type experts can do wonders while confining themselves
to any of four typefaces, which are recommended to the uninitiated: Caslon,
Bodoni, Garamond, and any contemporary sans serif. (Every printer has the
last under different names.)

Type Measurement

The point. When Benjamin Franklin opened his print shop in

Philadelphia, he ordered his type from Pierre Simon Fournier, a Frenchman
credited with being the founder of the point system. With 72 points to the
inch, type can be measured much more precisely than with an ordinary ruler.
It is measured in points from the top of the ascenders to the bottom of the
descenders. However, the point number given for a type refers to the total
size of the metal bearing the type—not the letter size. Therefore, the actual
print of a 72-point letter as it appears on the page is less than one inch.
Typefaces up to 18 points in size are generally referred to as text
type_"text” in this sense meaning the body copy. Type of 24 points and larger
is called display type.
 8 POINT
SIZE of type

10 POINT
SIZE of type

12 POINT
SIZE of type text type

14 POINT
SIZE of type

18 POINT

SIZE of type
24 POINT

SIZE of type \
30 POINT

SIZE of type
36 POINT

SIZE of type display type

42 POINT

SIZE of type
SIZE of type”
The size of type is determined by the height of
the face or body (not letter size alone) and in¬
cludes the ascenders, descenders, and the metal
shoulder. A "point” measures Y72 of an inch.
SET IN 72 PT. CASLON NO. 540

396
 The pica. The width of the line to be set is stated in terms of picas, 397
Print
of which there are six to the inch. "Pica” is the name originally given to 12- Production
point type; its letter M was selected as a unit of width, because it is a square
letter. Hence picas are sometimes called pica-ems, or just ems (of crossword
fame). An en is half the width of an em.
When lines are set in even width, right and left, they are said to be
justified, and one just specifies the width once for all type to be set. This para¬
graph is set 28 picas wide.

The agate line. In newspaper advertising, and in small-space maga¬

zine advertising, the depth of space (height of the ad) is measured in terms
of agate lines, of which there are 14 to an inch.
To recap:

—The height (size) of type is expressed in points.

-—The width of a line of type is measured in picas—six to the inch.
—The depth of space in which type is set is measured in agate lines—
14 to the inch.

Type Font

For any given face and size of type, a font consists of all the letters
of the alphabet, numerals, and the usual punctuation and decorative marks;
it also includes all these characters in capitals ("caps”) and lowercase ("l.c”),
roman, italic, and small caps ("s.c.”). A complete font of 11-point Garamond
follows:

This is roman Garamond, capitals and lowercase (cap/l.c.).

And this is italic Garamond, initial cap and lowercase.
THIS IS ALL CAPS, IN GARAMOND ITALIC.
This is cap and small cap in Garamond.

1234567890 '?/

Italics. Italicized lettering was introduced in 1501 by Aldus Manu-

tius, a Venetian printer and publisher, and named by him in honor of Italy.
It imitated the slanting script of Italian handwriting.

Roman. This second, quite different, meaning of "roman refers to

the standard form of a typeface, the way in which the face was originally de¬
signed.1 It is often used simply to distinguish copy that is not set italic. Used
in this sense, the word is not capitalized.

1 We meet here again the use of a word with two different meanings. Sorry, but

that’s the way it is.

 398
Creating
the
Werbung
THE BODONI family of type
BODONIBOOK

THE BODONI family of type

BODONI BOOK ITALIC

THE BODONI family of ty

BODONI

THE BODONI family of t

BODONI ITALIC

BODONI family
BODONIBOLD

THE BODONI family of

BODONI BOLD ITALIC

THE BODONI fa mi
ULTRA BODONI

THE BODONI Sam

ULTRA BODONI ITALIC

A family of type retains its basic resemblance and characteristics through all its sizes.
The display lines of the Bodoni family are all set in 30 point. Note the variety of
weight and color available in an individual family of type. Note also the difference
of character measure or width of each face.
 Caps and lowercase. In the days of hand-setting, capital letters 399
Print
were kept in a case above the one containing the "small” letters. Thus, "small” Production
letters became known as "lowercase.” Capital letters are sometimes referred
to as "uppercase,” although not often.

Leading. There is a small amount of space between typeset lines,

because the type character is slightly smaller than the metal block on which
it is cast. This difference between the size of the character and the metal is
called a "shoulder.” When lines are set without any extra space between
them, they are said to be set "solid.” Very often, however, additional space is
desirable, and the compositor accomplishes this in one of two ways: (1) he
sets the characters on a larger piece of metal, thus increasing the shoulder and
the space between lines; or (2) inserts thin metal strips between lines, called
leads (pronounced "leds”), which are measured in points. A leading is speci¬
fied by adding its value in points to the size of the type: 11-point type set with
2 points of space between the lines would be noted as "11 on 13,” or simply
"11/13.” This paragraph is set 11/13.

Type families. From a single design of type, a number of varia¬

tions are possible. Each one retains, however, an essential characteristic of the
original. The different variations of a single type face are referred to as its
"family,” and go well with each other within an advertisement where some
variation is desired.

Making Type Readable

The first principle of good typography is that if copy is important

enough to he printed, it must be readable. What makes type readable? To find
an answer, Paterson and Tinker tested the speed with which 33,000 persons
read various combinations of type. They found that the readability of type
depends on three things: (1) size of type, (2) leading, and (3) measure.2
Specific measurements are summarized in the accompanying chart of "safety
zones” for setting type, based on that study.

2D. G. Paterson and M. A. Tinker, How to Make Type Readable (New York:
Harper and Row, Publishers, 1940).

SAFETY ZONES FOR SETTING TYPE

Minimum Width Maximum Width

6 point____....._ 14 picas, solid 28 picas, leaded 1 or more points

36 picas, leaded 2 or more points
8 point_ 14 picas, solid 28 picas, leaded 1 or more points
36 picas, leaded 2 or more points
10 point_ 14 picas, leaded 1 31 picas, leaded 1 or more points
or more points Between 19 and 31 picas, leaded
2 points
12 point_ 17 picas, solid 33 picas, leaded 1 or more points
 400 The lines you are now reading are set in 8-pt. solid (8/8) Garamond, 28 picas wide (x 28).
Creating There is no leading between the lines, and if you are still reading them, you are a diligent
reader, because ordinarily a reader would have stopped before this. It is hard to read this size
the
type in this leading. It takes more than size of type to make a readable passage.
Werbung

The lines you are now reading are also set in 8-pt. type, just like the paragraph above, but they
have 2-point leading (8/10). It still isn’t fun to read a long passage in 8-pt type, but notice
how much easier it is to read this paragraph. This has been set this way to show the effect of
leading in making type readable.

These lines are still set in 8-pt. type, leaded 2 points

(8/10), as above, but they have been set only 16 picas
wide (x 16) instead of 28 picas, to show the impor¬
tance of width of line in making type readable. In all
these instances, the size of the type is the same; the
difference is in the leading and the width of the line.

TESTS HAVE ALSO SHOWN THAT A LINE OF TYPE SET IN CAPI¬

TAL LETTERS is harder to read than a line of type set in lowercase letters,
or Caps and Lowercase letters. CAPITAL LETTERS SHOULD BE USED
SPARINGLY. Used too often, they defeat their purpose.

To make an advertisement with a lot of copy readable, you might start it

with an initial letter as above. Use one family of type for captions and occa¬
sional subcaptions, and set the copy into two or more columns to avoid too
wide a column for the size type and leading. Remember the lesson of news¬
papers: Narrow columns make for easy reading of even small type.

Type fitting. Fitting of type means determining the size of type in

which copy should be set. For the production man specifying type, there are
many published sets of tables available. For the writer to judge how much
copy he should write to fit a predetermined amount of space, here is a simple
method: Look through a magazine or newspaper for an ad with copy set in
the size in which you would like to see your copy set. Count the number of
characters (not words) per square inch; each space and punctuation mark
counts as a character. Figure how much space you have for copy in terms of
square inches, and the number of characters you can have. On an elite type¬
writer you have 12 characters to the inch; on a pica typewriter, 10. Set your
line width in even inches on the typewriter; you will then know how many
lines to type.

Advertising typographers. When an advertiser plans to spend a

considerable amount of money on space, he wants his advertisement to have
fine typography—better than what an individual publisher could provide in
what is known as publication setting, or "pub set." He may have his copy
set by an advertising typographer, who specializes in type composition only
 401
The headline tells the story Print
Production

On this page we have examples of per line varies; see where the last
four families of type, with the head¬ word of each paragraph falls. Nov¬
line set in 24-point type of the fam¬ ices are in the company of master
ily, and the body copy set in 10 typographers when they stay within
point on 12 of the same family. one type family per advertisement.
You need not go outside a family The sign of a real amateur is trying
to have an interesting, harmonious to use too many faces in one ad¬
ad. Note how the number of words vertisement.
This paragraph has been set in Caslon.

The headline tells the story

On this page we have examples of where the last word of each para¬
four families of type, with the head¬ graph falls. Novices are in the com¬
line set in 24-point type of the family, pany of master typographers when
and the body copy set in 10 point on they stay within one type family per
12 of the same family. You need not advertisement. The sign of a real
go outside a family to have an inter¬ amateur is trying to use too many
esting, harmonious ad. Note how the faces in one advertisement.
number of words per line varies; see
This paragraph has been set in Bodoni.

The headline tells the

On this page we have examples of four words per line varies; see where the
families of type, with the headline set last word of each paragraph falls. Nov¬
in 24-point type of the family, and the ices are in the company of master
body copy set in 10 point on 12 of the typographers when they stay within
same family. You need not go outside one type family per advertisement. The
a family to have an interesting, har¬ sign of a real amateur is trying to use
monious ad. Note how the number of too many faces in one advertisement.

This paragraph has been set in Garamond.

The headline tells the story

On this page we have examples of the last word of each paragraph falls.
four families of type, with the headline Novices are in the company of master
set in 24-point type of the family, and typographers when they stay within
the body copy set in 10 point on 12 one type family per advertisement.
of the same family. You need not go The sign of a real amateur is trying
outside a family to have an interesting, to use too many faces in one adver¬
harmonious ad. Note how the number tisement.
of words per line varies; see where
This paragraph has been set in Futura.
 402 (not printing). Typographers set the type for most national advertising. Most
Creating local advertising is set by the newspapers, without cost to the advertiser.
the
Advertising Copy sent to the typographer or newspaper carries the type specifica¬
tions, marked right on the copy. They include:

a. Type size and leading

b. Type face (by name)
c. Width of line (in picas)

Copy Ready for the Advertising Typographer

Altman, Vos and Reichberg, Inc.

date_Augu-S-t_1 0,—1 971-

copy for Military Rnnk Club - New Pearl Harbor Ad - Job # MBC 224-

—- J-

Where were you atJoiQQ hrs 7 Dec 41'

Here are the books that will help you remember and understand!, } JU
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'The Military Book Club invite s7jou to) {<3

xTake/any 4 books/ --TT- T

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Courtesy, Altman, Vos, and Reichberg, Inc.

 Proofreader’s Marks
Dele, or delete: take>£ out.
"Printer’s Shorthand,’’ used
9 Letter reversed—turn.
in correcting the type
# Put in^pace.
proofs of advertisements.
Cl(Oe up—no space.
The marks come in pairs,
VA Badvspacing^spac<MnoreAevenly.
one written in the body of
Wrorfg font: character of wrong size or
the proof, the other in the
margin.
style.
Transp0e.
^lake a new paragraph.
P ^Indent; or, put in an em-quad space.
c Q Carry to the left.
3 Cljrry to the right.
n ^evate.
i_j qeprqss.
X Iprfperfect type—correct.
Space show^&etween words—push down.
Sfraighten crooked line.
11 = IlStraighten aligSJnent.
Mb Restore or retain words crossed out.
• * • »_♦ » •••••♦•

r\ Print (££, fT, etc.) as a ligature.

Words are omitted from, or in,^opy
© Query to author: Is this correct?
SLOdfU Put in-_
Ac/ Put in DM ALL CAPITALS.
U Put in LOWER CASE1 2 3 4.
Karrvo Put in roman type.
Mb Put in italfc type.

H Put in

Major Typesetting Methods

Now we move on to the methods of setting type. There are basically four
ways of setting type, each serving some special purpose:

1. Hand-setting
2. Machine-setting. Freshly molded by machine. Also referred to as
"hot metal type.”
3. Photocomposition
4. ((Cold type.” Typewriters with special typefaces and carriages.

403
 404 Hand-setting
Creating
t!o@ •
Advertising Hand-setting, the oldest method, affords the greatest possible latitude
in designing a page of text or display matter. Each character in every headline,
every phrase, sentence, and paragraph, is molded separately and set by the
compositor’s hand; by this painstaking method, he picks letters out of a case
and assembles them in a metal holder (a composing stick), according to the
style, size, and arrangement specified in the layout.
Not used for great quantities of reading matter, it is limited generally
to formal announcements and title pages of brochures or books, or where spe¬
cial faces are specified for dignity or expression of an unusual thought. It is
the slowest and least automated of all typesetting methods. This is known
as Foundry type.

California Job Case

Composing Stick

In this kind of case (above), the section on the right holds the capital letters. Lower¬
case letters, figures, punctuation marks, and spacing material occupy the middle and
left sections. Characters are so arranged in the case that common letter combinations
are close together. . . . Cases such as these hold three or four such fonts.
From David Hymes, Production in Advertising and Graphic Arts (New York: Holt,
Rinehart & Winston, Inc., 1966).
Elements of a Type Letter

A line at a time. Imagine a man sitting before a machine at a key¬

board like that of a typewriter. As he operates the keyboard, there is humming
and clicking within the machine. In a few moments there appears a bar of
metal, up to about five inches long, and type high.
Were you to pick it up, it would feel hot. Were you to look along
its edge, you could read the original copy molded onto the bar. The Linotype
is really a molding machine, with a pot of molten, or hot, metal within it.
The letters are molded from brass matrices which drop into their proper
places with the touch of the operator at the keyboard. After the complete
line has been set, it moves to the molding area where the line of type is
molded. Once done, the matrices are returned mechanically to the storage
magazine. The lines follow each other out of the machine, neatly stacked,
ready for the next step in printing. They are collected in a tray or galley,
each exactly the same width, or justified, by the machine.

Linotype Composition

This type has been molded by

a machine, a line at a time.
Courtesy, Mergenthaler Linotype Company.

403
 406 Just how this seeming miracle is performed can most readily be under-
6feating stood by seeing a Linotype in operation at a newspaper or printing plant, and
Advertising such a visit would be rewarding to anyone sufficiently interested. Most news¬
papers, books, and reading matter in advertisements are set by Linotype.
The advantages of Linotype are that (1) it sets type rapidly, and (2)
it is easier and faster to handle a line slug than individual letters of type. The
chief disadvantage of the Linotype is that if you want to change a single letter,
you have to recast the entire line. When the slugs have served their purpose,
they are thrown back into the pot of molten metal; no need to return individual
letters to the typecase, as for hand-set type.

Typ

In the left foreground is a

block of Linotype, each
line set separately. In the
right foreground are some
units of Foundry, a "hand
set" type, each letter or fig¬
ure being separate. In the
background are examples
of type molded a line at a
time on a Ludlow machine.

Courtesy, New York Daily News

A letter at a time. The Monotype consists of two machines—one

produces what looks like a roll of punch cards; the other is fed into the second
machine, a miniature type foundry. In contrast to the Linotype, which casts
letters a line at a time, the Monotype casts letters one at a time, separately.
They are assembled by the line, but each letter is separate. Even though you
still face major resetting with a substantial deletion or insertion, you can

Monotype Composition

This type has been molded by machine, but

each letter is separate. Note how the type
accommodates itself to the irregular plate
of the illustration.
i
Courtesy, Lanston Monotype Machine Company
change a letter or word in a line without resetting the whole line. The com-
positor can vary the line width as he goes along, a fact that makes Monotype Production
setting advantageous for setting type around an illustration, or for tabular
data, or for technical and mathematical material.

Hand-set, machine-molded. The Ludlow method of setting type is

used chiefly for headlines in newspapers, magazines, and ads. It is a combina¬
tion of hand-setting and machine-casting. Any size line can be set. Matrices
of the type (rather than the type itself) are assembled by hand and set into
a casting machine, and within a few seconds the line of type is cast. This sys¬
tem provides an unlimited number of characters, and because it provides newly
molded type for each job, the letters print cleanly and sharply. Lines are cast
into slugs 221/2 picas long, and longer lines are made in multiples.

Photocomposition

Now we come to photocomposition, which, in the opinion of many,

will become the dominant way of setting advertising type, and in the opinion
of some now working in the field, may become a way of the future for printing
books. The system involves the computer, photography, and a special tele¬
vision system.
In photocomposition, an operator types all the copy on a machine that
converts it into computer tape. He also types the instructions as to the size of
the type and the line width, and any other typographical instructions to be
followed. The tape then will control the entire operation. The photography
comes in the form of a film, holding the complete font of one face of type.
Obviously these letters are very small. The first surprise in photocomposition
is to learn that this is all the type needed for anything set up to 18 points,
because the type can be magnified to that size and then enlarged to any size.
An operator can have an inventory of 1,500 fonts on six 6-inch shelves!

The Photocomposition Principle

The stencil, controlled

Photosensitive
paper picks

The Cathode Ray uPthelma9e‘

Tube, like a TV ^
set, emits the
image.
 Photocompo¬
*

NORMAL CONDENSED.. EXPANDED... BACKSLANTED

sition tape, The array of letters on the
containing all left demonstrate the flexi¬
copy and type bility of a film font. The
instructions. type below, set on a photo¬
ITALICIZED IN VARYING composition device, would
•• • ••
••
otherwise have to be hand-
•• drawn.
••
••
•• ••
••
Courtesy, Visual Graphics
WIDTHS AND DEGREES OF SLANT!
Corporation
••
••
••
•• • ••
•« ••
©• ••
• ••
••
• ••••
••
•• ••
• •• • ••••
• •• • ••••
EVERY TIMEI

The selected film font—really a stencil through which light can pass—
is set in the machine. When everything is ready, the computer tape turns on
a light in front of the film, lighting up each selected letter in turn, and moving
across the width of the line at incredible speed. The light is picked up by an
anode tube, as in a TV studio, which changes the light into electronic im¬
pulses, corresponding to the shape of the letters. These are carried to a
cathode-ray tube like the picture tube in your TV set, which turns the elec¬
tronic impulses back into picture form; except that here, it shoots the electrons
directly onto photosensitive paper, which develops or prints the letters right
on the paper. The result is a rapidly made print of the copy with more sharp¬
ness and less cost than by metal type. Prints can also be made on transparencies,
instead of on paper, for some printing processes.

The Photo Typositor produces display type photographically from film fonts such
as this one, which contains a complete alphabet of a particular type style in negative
form.

Courtesy, Visual Graphics Corporation

 Because photocomposition is such a radical development, anyone who 409
has been working with hot-metal typography will become aware of the great Production
differences in handling the two. For example, there are no standard sizes, as
in hot metal typography; the letters can be made any size you want, within
limits. It is necessary to use the type book of the photocompositor in choosing
type, and not a hot-metal catalog. You can do all kinds of tricks with the type
_all from one little film. You can make it taller or shorter, wider or thinner,
you can give it perspective; make it lean forward or backward; and do all the
things for which, in the past, you had to have an artist hand-letter the effect
you sought. It is versatile, indeed.
The latest generation of such equipment can set the whole advertise¬
ment (photograph and copy together) from layout, and, if necessary, transmit
such information over long distance by cable. There are several systems each
operating by one or more principles common to existing methods.

"Cold Type”—Typesetting Typewriters

Typewriters that can type in a variety of faces and produce camera-

ready copy represent the cold type family. The simplest machines, such as the
IBM Electromatic and the various automatic electric typewriters, may or may
not be able to justify copy and usually offer only one typeface and size. More
complicated devices (such as VariTyper, Lithotype, and IBM Selectnc) offer
a greater selection of faces but are not automated. The most sophisticated forms
are almost completely automated.
Computerized coldtype is used commonly for catalogs, directories,
and indexes, which have to be reprinted and updated regularly. They are
brought up to date with a corrections tape, saving the need for resetting
everything.

The Major Printing Processes

Most advertising is printed by one of three major printing processes:

1. Letterpress: printing from a raised surface (relief printing)

2. Offset lithography: printing from a plane surface (pianograph

printing )

3. Rotogravure printing: printing from a depressed surface (intaglio

printing )
OFFSET ROTOGRAVURE
LETTERPRESS (Lithography) (Intaglio)

-i

Raised Y \ /
Depressed
Ink Plane Ink (etched
surface
surface surface)
holds ink
 410 Letterpress Printing
Creating
the
Advertising The easiest way to understand the principle of letterpress printing is
to look at the type bars of a typewriter. There each letter stands out in relief
above the surface of the type bar. When the key is touched, only the letter
in relief strikes the ribbon and transfers its design to paper. That’s printing
from relief type, called letterpress printing. This is the only process that uses
type directly.
Letterpress printing is the most versatile form of printing, and most
widely used. Most printers are equipped to produce it. Letterpress printing
gives sharp reproductions. It can print full-strength colors and blacks that are
really black. It can provide a high degree of fidelity to the original in color
printing. In letterpress printing, the advertiser must supply the photoengraving
plates of any illustrations, as we will discuss later.

Letterpress impression
cyl inder

Offset Lithography
image

To explain the principle of lithography, skipping many details, a

photographic negative is made of the advertisement. Through this negative,
then, light is flashed onto a photosensitive plate. After being flushed with
chemicals, the exposed (or printing) areas on the plate become capable of
transferring ink to paper, while the unexposed (nonprinting) areas are not.
When ink is passed over the ivhole plate, only the ink-receptive areas print.
That’s direct lithography, which was the original form of lithography,
and which is still used for printing posters, labels, and packaging. The most
used form, however, is offset lithography, colloquially known as just offset.
It gets its name from the fact that the roller of ink does not touch the paper,
but prints on a rubber-blanketed roller, which in turn offsets the ink to the
paper.
The chief advantages of offset are that it gives photographs a soft
effect, that it can print photographs on rough paper, that it requires little
makeready time and expense, that it has low plate-making costs all handled
by the printer—and that it can handle sheets up to 52 x 74 inches in size. Production
Offset and letterpress are in direct price competition on many jobs. In offset
printing, the advertiser must supply the material for the finished ad as it is
to appear. The offset house makes all the plates of any illustrations, or at the
advertiser’s order, obtains them from firms that specialize in making negatives
from advertisers’ copy.

Rotogravure Printing

Have you ever passed your finger over an engraved calling card and
felt the raised dried ink?'That card was printed from a plate in which the
printing area was etched by hand. When ink was applied to the face of the
plate, and the excess wiped off, ink remained in the etching, and, when a card
was pressed against it, was transferred to the card. That form of printing,
from a sunken design, is called intaglio printing.
Rotogravure also works on the intaglio principle. Here the plate is
not etched by hand, but by a photographic-chemical process. The etching is
only one to two thousandths of an inch deep; nevertheless, it is an etching.

Platemaking for rotogravure. Hymes reports that it takes 24 steps to

prepare a rotogravure plate for printing.3 We skip from the early steps, when
the advertisement is photographed and the negative transferred to a sensitized
copper roller, to the final steps, when the plate has been etched and inked and

3 David Hymes, Production in Advertising and Graphic Arts (New York: Holt,
Rinehart & Winston, Inc., 1966), p. 187.

Rotogravure
the excess wiped off. The ink in the etching is transferred to paper pressed
against it. The original subject has been reproduced by rotogravure.
In rotogravure you are dealing with heavy copper rollers; you cannot
readily make changes. But once the plate has been made, you can print 500,000
copies, and even millions, at a very low cost per unit. Therefore, rotogravure
is widely used by catalog houses and the Sunday newspaper supplements, and
for long-run direct-mail work.
In rotogravure, as in offset, the printer makes all the plates, working
from precise original copy supplied by the advertiser, or, at the advertiser’s
order, from firms that specialize in making negatives from advertisers’ copy.

Silk-Screen Printing

Even though the silk-screen process does not rank in importance

with the three major ones, it is very useful for printing runs under 5,000, as
for store displays and bus cards, calling for flat colors and simple line work.
It is a method of printing with a squeegie, forcing the ink through a screen
in which a stencil forms the area where the ink is to go. A different screen
or set of stencils is used for each color. With each screen, you can print with
solid colors or fluorescent colors, but not with graduated tonal values.
Since you can print on any kind of surface—paper, cardboard, glass,
or metal—silk-screen printing is widely used for display cards for stores and
for transit.

Silk Screen Printing

mage in screen

Squeegie

Photoengraving

When an advertisement is to be printed by letterpress, the advertiser must

supply all plates of the illustrative material in the form of photoengrav¬
ings. The picture must stand out in relief on these plates, just as the letters of
type do on a typewriter. This effect is attained by a combination of photography
and chemical engraving—hence their name. The two main forms of photo¬
engraving are (1) line plate and (2) halftones.
 Line plates can be made from any illustration (preferably black and p?t
white) consisting of solid lines or solid masses, as in Illustration A. Line Production
plates can be printed on any paper, and are the least costly form of photo¬
engraving.
For photographs and other illustrations with graduated tones from
light to dark, halftones are needed, as in Illustration B. They are limited as
to the types of paper on which they can be printed.

Suppose you have to make a letterpress plate from a line drawing of

a simple T. You would photograph it and print it on a metal surface coated
with a photographic emulsion. The area where the T is printed becomes acid-
resistant. The plate is dipped into a bath of acid, which eats away the metal
around the T; it is left in that bath until the etching is sufficiently deep for
the T to stand out high enough to be suitable for letterpress printing. The
plate is removed and mounted on wood for ease of handling, and is ready to
be printed. The same thing would be done to any design clearly drawn in black
lines or areas. This plate is then sent to the printer, who inserts it into the
space left among the standing type. Printing plates may then be made from
type and engraving together.

Benday. Line plates can be made only from drawings in black line
or black masses. To get the effect of a shadow, the lines can be drawn close
together, but they must be sharp. Or the shadow can be drawn in solid black.
The benday process (named after Benjamin Day, the man who created it) is
designed to give a line-plate subject some variation in shades between different
THE PHOTOENGRAVING PRINCIPLE OF MAKING LINE PLATES

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414
415
 416 parts. It reminds the writer of a coloring book, where children color outlined
Creating
areas in different colors, but instead of using colored crayons to color flat
the
Advertising areas in outline form, the engraver (for letterpress) or artist (for offset) lays
down a shading unit with designs of different patterns of lines and dots. Each
pattern, however, is a clear line-plate subject. The result: a line plate with
various designs and variations in shading.

Line color plates. A line plate printed in one color is referred to as

a single-color plate. To produce line plates in two, three, or four colors, each
extra color is marked on a separate tissue, or overlay. The artwork itself is not
colored. The engraver then makes a separate set of plates for each color. Line
color plates provide a comparatively inexpensive method of printing in color
with effective results.

Halftone Plates

Unlike a line drawing, a photograph or painting is a blend of many

black and white tones; they give form to the picture and its background.
 Magnification of
Halftone Plate

Showing how it is com¬

posed of black dots of
different sizes. The cen¬
ters of the dots are
equal distances from
each other; they vary
only in size.

Screening. How can these tones be converted into a form as sharp

and clear as the lines and masses of a line drawing? The secret lies in a screen,
which is placed in front of the lens, bearing a crosshatch of 50 to 150 hairlines
per square inch, forming from 2,500 to over 25,000 little windows through
which light can pass. The greater the density of the crosshatch per square inch,
the smoother the appearance of the halftone.
When you look through a screened window, you are aware for the
moment of the screen before you; but soon the brain adjusts to the screen, and
you see the view as a whole, oblivious of the screen. But a camera has no brain
to make such an adjustment. It records exactly what it sees through each of
those windows. WTat it sees is so tiny that only a dot can come through,
varying in size with the blackness of the part of the picture it is seeing. Where
the picture is dark, the dots are big and close to each other; where it is light,
the dots are as small as a needle point; and so, dot by dot, the camera records
on a sensitized plate all the varying tones of the picture, just as they are on
the original.
From that point on, the halftone is treated like a line plate; the pic¬
ture in the form of dots is printed on a metallic plate, which is washed with a
preparation that makes the dots acid-resistant. The plate is immersed in an
acid that eats away the metal except for the dots, and before long, a plate
emerges in which the dots stand out in relief. When a roller of ink is passed
over them, and paper applied, the ink on the dots is transferred to the paper,
producing a replica of the original picture. A halftone plate has been made
and printed. If you look carefully at some newspaper ads, you will recognize
the separate dots.
 418 Choke of screens. Different types of paper reproduce differently,
Creating
and screens come in a variety of sizes so that the size of the dots can be
the
Advertising chosen that will reproduce best on the paper to be used. The number of dots
per square inch is standardized. Those most frequently used are 55, 60, 65, 85,
100, 110, 120, and 133, although higher numbers are available. The higher the
screen number, the more dots per square inch, and the greater the fidelity and
detail in the final reproduction. But the higher the screen, the smoother the
paper has to be to have all the dots strike it. That is why for newspapers, 65
screen is often used, and for magazines, 120 screen. It is mainly the paper that
determines the screen.

HO Halftone Screens 165

The lower the number on the screen, the fewer the dots per square inch. The higher
the screen, the more dots per square inch. The choice of screen depends upon the
smoothness of the paper and the amount of detail required.

Halftone Finishes

The half-tone finish refers to the way the background of the main subject is
treated. When you take a snapshot of a friend’s face you will get a print of the
friend’s face, plus the background. If you want to make a halftone of it for
printing purposes, the engraver can treat that background in a number of
ways. He can leave it all in with the background screen extending to the edge
of the rectangular plate. This is called a square halftone. He can cut away
everything in the background but the face so that the face will appear sharply
against the white background of the paper. This is called a silhouette or outline
halftone. The square halftone is the least expensive finish; the outline halftone
costs more but gives the sharpest picture of the subject. These are the forms of
finish in most universal use.
 Halftone Finishes

Silhouette Halftone
* ■>

(background cut away)

Square Halftone
(includes background)

Color halftone plates. A color reproduction can be made from half¬

tone copy in one of two ways. First, a halftone can be printed in black over a
screen in another color. Or a halftone can be photographed twice, turning
the screen on an angle the second time so that the dots for each plate fall in
between each other rather than directly on top of each other. This second
method is called duotone.

Full-color reproduction. The finest reproduction of a color print or

painting is by means of a set of four color plates, representing yellow, red,
blue (the primary colors), plus black. The photographer takes four separate
pictures with filters; first he will use a purple filter that allows only the yellows
to come through; then an orange filter for the blues; a third green one for the
reds; and finally one for all shades of black. He makes a separate plate for each.
Then when they are all combined by four runs through the press, they will
reproduce all the colors, intensity, and values of the original. Such plates are
also referred to as four-color process plates, or full-color plates.
419
 420 Duplicate Plates
Creating
the
An advertiser may need duplicate plates of his letterpress advertise¬
Werbung
ment, to send to the different publications on his schedule, to save the costly
original plates, to issue reprints of his advertisements, to send to dealers for
cooperative advertising, or for other purposes. He has at his disposal: (1) elec¬
trotypes, or (2) mats and stereotypes.

Electrotypes. The electrotype is the hard-working distant relative of

the silver-plated spoon; they are both children of electrolysis. In the making of
an electrotype, the original plate is pressed into wax, forming an exact mold.
The mold is sprayed with graphite, making it a conductor of electricity. It is
connected to an electric wire and suspended in a bath. Facing it in the bath
is a bar of copper connected to the second wire of this circuit. WTen the cur¬
rent is turned on, there is a migration of ions from the copper bar to the wax
mold, soon covering it completely and forming a hard shell. Shortly, out
comes the whole wax mold with its face of copper. The wax behind that copper
shell is removed, and in its place hot metal is poured. Wlien this has cooled,
there emerges a metal plate bearing an exact duplicate of the original plate.
That is an electrotype (electro).

of ions face is
then used
as a mold
for the
metal

Wax-mold electros serve for most purposes. When especially fine

reproduction is required, lead and plastic molds may be used, with nickel fac¬
ing instead of copper. When many duplicate plates have to be made, an es¬
pecially hard plate called a pattern plate is made, from which all the other
electros are made, sparing the original.
A disadvantage of an electro is its cost, as well as the expense of
shipping a heavy plate. For newspaper printing, mats are less expensive.
How a Full-Color Reproduction

is made,

through the use of

Four Color Halftone Plates

 The mat. The least costly form of duplicate letterpress plate, and 421
Print
the one in widest use for newspaper advertising, is a mat or matrix. The mat, Production
however, is only one half of a two-step operation. It is made by pressing a plate
of the ad into dampened papier-mache. When dried, the papier-mache forms
a hard matrix, from which it gets its name. When molten metal is poured into
the mat and hardened, a metal replica of the original plate is formed, called a
stereotype (or stereo).

Paper mache' The Making of Stereotypes

/
Original Letter Press Plate

i s
i. Y\M Molten metal
Profi le
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Paper mache'mold.
or "mat."

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duplicate plate'
 A Printing Form

In the center are various units

of type, with the photoengrav¬
ings prepared for the adver¬
tisement. On the outside is a
strong rigid, metal frame or
form. The matter to be
printed is held in place by a
series of wedges which are
tightened. The form is then
Courtesy, International Assn, of placed on a press for printing.
Electrotypers & Stereotypers, Inc.

One does not print from a mat; someone must make a stereo.
It so happens that newspapers use mats for the curved plates they
need to fit the rollers of their presses. As a result, they can accept the adver¬
tiser’s mat and make a stereo of this (no charge to advertisers). Mats are
widely used for newspaper advertising by national advertisers; also for dis¬
tribution to dealers for local advertising. Stereo reproduction is not as sharp
as that of electros, but it is well suited to newspaper reproduction, and less
expensive than electrotype. The number of times a mat can be used is limited.
Mats for newspapers tend to shrink, a factor that must be provided
for in ordering. For better reproduction, there are stronger and sharper mats
made, called dry mats, coated mats, plastic mats, and other patented mats.
They are less sharp than electros, and cost less to make and ship.

Making Offset Plates

For both line and halftone copy, the printer needs a mechanical layout.
The main plate-making advantage to offset printing is that text and line
art may be handled together by the printer. If the advertising agency so
elects, it can supply final-size prints of all line art, pasted into the proper
position with the text. The printer can then shoot the entire mechanical with
one click of the shutter. Usually, however, the agency will prefer to supply
the mechanical with only the text in place and the art in oversized form, to be
reduced photographically and then positioned by the printer according to
instructions.

Paper

We now move from printing processes and plates to the next dimension of
print procedure: paper.
For publication advertising, the creative and production directors must
know on what kind of paper the advertisement will be printed, in order to
plan their artwork and plate needs. In direct-mail advertising, they have the
additional responsibility of selecting the paper.

422
 Classes of Paper 425
Print
Production
The three chief categories of paper used in advertising are:

1. Writing paper
2. Book paper
3. Cover stock

Writing paper. This is the paper most used for office letter-writing
and in direct mail. The kind most frequently met is bond paper, which is
specified whenever printed matter requires permanence and durability. Letter-
press and offset reproduce well on bond, and both are equally economical.
Offset, however, is a better choice than letterpress when halftones are re¬
quired.

Book papers. This represents the widest classification of papers

used in advertising, with many variations. Chief among these are:

—News stock. The least costly book paper, built for a short life,
porous so it can dry quickly. Takes line plates well, also halftones
of 55, 60, 65 screens, provided the artwork has sharp contrasts.
_Antique finish. This refers to a paper with a mildly rough finish.
It is soft paper. It cannot take halftones, but is widely used for
offset.
—Machine finish. Most books and publications are printed on
machine-finish paper, which takes halftones up to 110 screen
well. It is the workhorse of the paper family.
—English fnish. Here is a book paper that has a higher degree of
smoothness than machine finish. It can take halftone screens
up to 133 screen.
—Coated. This is a paper that is given a special coat of clay, and
then ironed. The result is a heavier, smoother paper. It can
take 150-screen halftone very well, and is therefore frequently
used in industrial catalogs, where fine sharp reproduction is im¬
portant and that will be used over a period of time.

Why Different Screens?

On the rough surface paper (at top) a

coarse screen halftone is used so that a
greater proportion of dots actually touches
the paper. On smooth paper (at bottom)
a greater proportion of dots from a fine
screen can touch the surface, improving
fidelity of reproduction.
 424 Cover paper (cover stock). Here is a strong paper, highly re¬
Creating
sistant to rough handling, used not only for the cover of booklets, but some¬
the
Advertising times by itself in direct-mail work. Although it has many finishes and textures,
it is not adaptable for halftone printing by letterpress, but reproduces tones
very well in offset.

There are many other types of papers used for many purposes, but
writing, book, and cover are the chief ones in advertising. In any given situa¬
tion, the printer will submit samples of paper suitable for a given job.

Basic Weights and Sizes

Paper comes off the machine in large rolls. It is then cut into large
sheets in a number of different sizes. In that way, many pages can be printed
at one time. Paper is sold by the ream of 500 sheets, and its grade is deter¬
mined by weight. To meet the problem of trying to compare the weight of
paper cut to different sizes, certain sizes have been established for each class
as the basic ones for weighing purposes. These are:

For writing paper 17 x 22 inches

For book paper 25 x 38 inches
For cover stock 20 x 26 inches

Hence, no matter how large the sheet may be into which the paper has been
cut, its weight is always given in terms of the weight of that paper when cut
to its basic size. Thus one hears a writing paper referred to as a 20-pound
paper, a book paper referred to as a 70-pound paper, a cover stock identified
as a 100-pound cover.
Paper has to be selected in relation to the method of printing and the
plates to be used, or vice versa.

Planning the Work

In order that the creative and the production work may move with the neces¬
sary precision, a time schedule is planned at the outset. The closing date is the
date or time when all material must be in the hands of the publisher. The ad¬
vertiser works backwards along the calendar to determine when the work
must be begun in order to meet that date (as in figuring out what time you
must leave the house, allowing time for driving delays and parking difficulties,
in order to be in your seat for the kickoff).
As an example, let us take a four-color letterpress advertisement to
appear in a magazine, for which the closing date is October 1. We then plan
a production schedule like this:
 /

Production Schedule 425

Print
October 1 Production
In order to reach publication by closing date
Plates must be shipped by electrotyper by September 26
Engravings must go to the electrotyper by September 22
Engraver should deliver final proof September 17
Engraver should have first proof September 12
Material should go to photoengraver August 24
Art and mechanical layout should be ready by August 17
Type and mechanical layout should be ordered on August 11
Finished artwork should be delivered by August 10
Finished artwork should be ordered by July 21
Creative work (art and copy) should be approved by July 20
Creative work should start by July 1

A Production Schedule
PRODUCTION ORDE R
This form is for use in Client: Product: Req'n:

planning the preparation Medium: Issue: Size: No. Colors:

of an advertisement. The Title:

date when it is due at the Ad. No.:

publishers is first entered

(near bottom in form).
The date when electrotype PRODUCTION SCHEDULE JfYR TVJn

is due is next filled in, and

DUE DATE DATE MET REMARKS
so on up the column. The
work of the entire organi¬ Establishment of Idea

zation is thus scheduled.

O.K. of Idea,if necessary

Rough Sketch (Estimate $-)

Kopieren Sie

O.K. (Rough, Copy and Estimate)

* Finished Art Work

♦Client's O.K.

♦Engraving

♦Type Setting

♦Client's Final O.K.

♦Electrotyping

♦Delivery to Publisher

•These dates established by Mechanical Department when making out order. All other dates established by ProducUon Manager.

Outside $ Inside $. Revise $

 426 In the case of an advertisement for a weekly magazine section of a
Creating
newspaper with a closing date 12 days prior to the time of publication, the
the
Advertising entire schedule would have to be proportionately compressed. In a newspaper
advertisement, the work would pass along with even greater dispatch—six
hours from idea to approved proof, if necessary—as any department store
advertising production manager knows only too well.

Review of Print Production

It may be helpful to review some of the more important technical terms we

have recently encountered.
We discussed three basic forms of printing—letterpress (from raised
surface), offset lithography (from flat surface), and gravure (from etched
surface). The form of printing affects the way material is prepared for
publication.
Typography deals with the style (or face) of type in which the copy
is set. Typefaces come in related designs called families. The size of type is
specified in points (72 to the inch). The width of the line in which type is to
be set is measured in picas (6 to the inch).
These are the chief ways of setting metal type: by hand; by Linotype
(type cast one line at a time); by Monotype (type molded in separate letters
and set by machine in line width); and by photocomposition (type repro¬
duced electronically on sensitized paper).
If you plan to use illustrations for letterpress work, you will have to
order photoengravings. The two chief classes are line plates (for sharp black-
and-white artwork), and halftones (for photographic-type artwork). In the
case of line plates, you can apply different patterns of shading to different
areas by means of benday. In the case of halftones, you have to specify the
screen, which depends chiefly upon the smoothness of the paper’s surface;
the rougher the paper, the coarser the screen. You also have to specify how
you want the background treated. This treatment is referred to as its finish.
The chief finishes are square (includes everything), and outline or silhouette
(everything cut away except the subject itself).
Once a photoengraving is made, you can order duplicate plates. For
newspaper purposes, you can order a mat and send it to the paper, where a
stereotype of it can be cast for use in reproducing the advertisement (the least
costly way). You can also have electrotypes for magazines.
For offset and gravure processes, no separate plates need to be ordered.
The material is forwarded to the publisher as it is to appear.
In all production work, a most important element is timing.
 /
427
Review Questions
Print
Production
1. What is meant by: 7. What is the basic technical differ¬
a. a serif ence between letterpress, offset, and
b. upper case letter; lower case rotogravure printing?
letter. (Draw an example of
8. What is the chief advantage or use
each.)
of each?
c. leading
d. font 9. How does material sent to the
e. family of type printer for offset and rotogravure
f. halftone finish differ from that sent for letterpress
2. What are the chief things to strive printing?
for in typography?
10. What is the chief difference be¬
3. There are three elements to be con¬ tween a halftone and line plate in
sidered in making type readable. regard to: (1) the art work they
What are they? can best reproduce, (2) the paper
on which they can be printed?
4. When do you measure by points?
How many to the inch? When do 11. What is the relation between a mat
you measure by picas? How many and a stereo ?
to the inch?
12. What are the chief types of paper
5. What is meant by "hot type’’? used in advertising?
6. What are the chief methods of set¬
ting type?

Reading Suggestions

Arnold, Edmund C., Ink on Paper, A Melcher, Daniel, and Nancy Larrick,
Handbook of the Graphic Arts. New Printing and Promotion Handbook.
York: Harper & Row, Publishers, New York: McGraw-Hill Book Com¬
pany, 1966.
1963.
Pocket Pal, "A Brief History of Printing
Bahr, Leonard ATA Advertising
F.,
and Paper.” New York: International
Production Handbook. 4th edition.
Paper Company, 1966. Also in Klepp-
New York: Advertising Typographers
ner and Settel, Exploring Advertising,
Association of America, Inc., 1969-
p. 166.
Bockus, William, Jr., Advertising
Graphics. New York: The Macmillan Schlemmer, Richard M., Handbook of
Company, 1969- Advertising Art Production. Engle¬
wood Cliffs, N. J.: Prentice-Hall, Inc.,
Hymes, David, Production in Advertis¬
1966.
ing and the Graphic Arts. New York:
Holt, Rinehart & Winston, Inc., 1966.
18
The Television Commercial
Creation and Production

Creating the Television Commercial

A good first step in creating the commercial is to decide exactly what you
want the viewer to remember about your product after the commercial is over.
That is the sales message. All else is technique.
The sales message is usually agreed upon before the commercial is
started. If not, we have to determine the chief service this product can render
in meeting some problem of the viewer—whether it’s giving the family more
variety in meals, or getting a better shave faster—and then determine the
special way in which this product can help meet that problem. The art then
is to present that story as interestingly as possible in 30 seconds, the time for
most commercials. (In writing commercials, the picture is called video; the
spoken parts, audio.)
Once that is determined, a writer can use all the imagination and skill
at his command in the technique he uses, provided only that it holds the
viewer’s attention at the outset, and that when the commercial is over, the
viewer comes away with the message about the product that was originally
agreed upon. The test of a good commercial is not having the viewer say,
"That’s a good commercial,” but rather "That’s a good product.”

Types of Structure

With the aid of pictures (video) and sound (audio), a writer has
many ways of telling his story—even in 30 seconds, which is the most popular
length of non-network commercials. Among the many approaches that Book
and Cary offer are the following guidelines. They are all predicated upon try¬
ing to develop a single idea, clearly and logically.

Story line Telling a story that involves tension at the outset and
leads to a logical conclusion.

428
 Problem-solution Based on predicament or problem, enlightenment, 429
as by a friend, happy results, with aid of product (often called Television
slice of life). Commercial-—
. r , , Creation and
Chronology Tells message through series of related scenes, one Production
growing out of another.
Special effects Strives for a mood that relates to product and its uses.
Testimonial Matching your product with believable celebrity, com¬
petent to pass judgment on such product.
Spokesman A radio commercial illustrated by a moving picture of
the product and announcer.
Demonstration Don’t try to fool the viewer.
Suspense Begin the suspense immediately, build it carefully, end
with clarity and relevance that reward the reader.
Analogy Make certain that the analogous example is one that is
familiar and understandable to most viewers.1

In addition to the items above, there is animation, which can tell its story
with charm and humor, and many other structures that are constantly being
developed.
Styles in commercials, as in movies, have their waves of popularity,
representing constant challenges to the writer to develop fresh patterns.

Writing the Commercial

The commercial is usually written in double columns, with the audio

on one side and the video on the other. In presentation of the commercial to
a client, it is often sketched out, sequence by sequence, on a series of layout
forms called a storyboard. The storyboard gives the advertiser a visual idea of
what is planned, and provides agency and producer a base for the meeting of
minds, and for estimating. In creating the commercial, Bellaire offers the fol¬
lowing suggestions:

1. The video and the corresponding audio should relate. Don’t be

demonstrating one sales feature while talking about another.
2. While the audio should be relevant to the video, don’t waste
words by describing what is obvious in the picture. Rather, see
that the words interpret the picture and thereby advance the
thought.

1 Albert C. Book and Norman D. Cary, The Television Commercial (New York:
Decker Communications, Inc., 1970).
 THE SINGER COMPANY
60-SEC TV COMML REVISED
"THE SINGER STRETCH”
SF-SM-0086
AS RECORDEDi Jan. 18, 1971

VIDEO AUDIO

1. OPEN ON CLOSE SHOT WOMAN PUTTING SOUNDS i BABY, MOTHER TALKING TO BABY
BABY IN PLAYPEN. AS SHE STRETCHES TO
PUT BABY DOWN, SHOULDER SEAM OF BLOUSE
SPLITS IN SYNC. SHE REACTS, SHOWING
SEAM SPLIT.
SFXi RIPPING SOUND

1. A, FREEZE FRAME

2. ZOOM BACK OR CUT TO SEE WOMAN BENDING

SOUNDS OF CHILDREN OR MUSIC UNDER.
TO PICK UP BABYrS BOTTLE OR TOY FROM FLOOR
NEAR PLAYPEN. SFX IN SYNC WITH BENDING
MOTION.
SFXi RIPPING SOUND

2.A. FREEZE FRAME

ANNCRi (VO)
3. CUT TO WOMAN PREPARING SANDWICHES.
SEE LITTLE GIRL TUGGING AT WOMAN'S SLEEVE, Sometimes it's like the whole world
is trying to pull you apart.

SFXi RIPPING SOUND

3. A. FREEZE FRAME

4. DISS TO CU SINGER ”S” ON 750 MACHINE. But now

5. ZOOM BACK TO BEAUTY SHOT OF MACHINE. there's a way to really hold things
together,

6. ECU NEEDLE SEWING STRETCH STITCH. BG MUSIC STARTS UP, THEN UNDER
SUPER WCMAN ON LADDER Do the Singer Stretch]
STRETCHING OUT ARMS TO HANG DRAPES. MUSIC EFFECT* STRETCHING SOUND

7. AS SHE STRETCHES ARM TO EXTREME Sew stitches that stretch

8. ZOOM IN TO CU UNSPLIT SHOULDER SEAM and hold] With

ON OUTSTRETCHED ARM.

9. DISS TO FINGER ON STITCH SELECTOR One Touch Sewing — on the

DIAL.

10. PULL BACK OR DISS TO FULL MACHINE newest Golden Touch & Sew machine.
SHOT. FINGER ON DIAL. "SINGER” NAME By Singer.
VISIBLE.

11. CUT TO CU FINGER MOVING STITCH One touch and you choose
SELECTOR DIAL. your stitch ...

The Original Script

One page of the original script for a Singer sewing machine commercial. Transla¬
tion. Freeze hold; CU = close-up; ECU ~ extra close-up; Zoom — move camera
closer to subject, making it larger; SFX = sound effects.
 CUENT: THE SINGER COMPANY
PRODUCT: SEWING MACHINES
TITLE: “SINGER STRETCH” DATE: 2/27/71
«0 LEXINGTON AVENGE CODE NO.: SFSM0086 LENGTH: 60 SECONDS
NW N7IHK 17 JO# 409448

2. (MUSIC) MOTHER: (VO) Oh! 4. (MUSIC & CHILDREN

1. (MUSIC Si SFX)
UNDER) MOTHER: (VO)
Oh!

5. ANNCR: (VO) Sometimes 6. But now there’s a way to 7. (MUSIC UP fc UNDER) 8- Sew stitches that stretch...
it’s like the whole world really hold things'together. Do the Singer Stretch! and hold!
is trying to pull you apart.

9. With One Touch Sewing .

10 -on the newest Golden 11. One touch and you choose 12. Only Singer brings you
Touch t< Sew machine. your stitch... these 9 kinds of stretch
By Singer. stitches.

13 . And stretch stitches hold 14. (MUSIC) 15. Do the Singer Stretch! 16. Stretch your budget with
One Touch Sewing
when regular stitching
breaks.

.
17 on this Golden Touch 18. At your Singer Sewing 19 . It sure helps hold your .
20 (MUSIC UP & OUT)
& Sew machine. Center. world together.

Photoscript of Finished Commercial

A photoscript consists of photographs taken from the finished commercial, usually

corresponding to the key items on the script or storyboard.

Courtesy: The Singer Company

Advertising Agency: J. Walter Thompson

431
SHE (FADES UP)...and the hospital.
SHE: Not .just milk.
don't forget to buy Light n' Lively HE: (MUMBLES)
Light n* Lively low
milk for the kids Milk, right.
fat milk.
while I'm at...

she: Ui course, it's HE: (LOOKS UP

got more protein and PUZZLED)
calcium. And it's
convenient for you.

T/ jlJSfK f \\ } ^
* ! J -

1
s t
\

'Wfm 9 !+~
M
14 ; N W AYER& SON.,
r ='3>.
CLIENT: SEALTEST FOODS

PRODUCT: LIGHT N' LIVELY MILK

VO: The one kind to TITLE: "PREGNANT"

remember. Light n'
Lively low-fat milk: LENGTH: 30 SECONDS
20% more milk protein
and calcium from
Seal test.

The Original Storyboard

Going off to the hospital to have a baby is the imaginative, completely plausible
springboard for telling the story of Sealtest Light N’ Lively Low Fat Milk.

452
 CLIENT: SEALTEST FOODS TITLE: "PREGNANT"

N W AYER & SON INC. PRODUCT: LIGHT N'LIVELY MILK COMM'L. NO.: XRXL1320
LENGTH: 30 SECONDS

3. HE: (MUMBLES) Milk

1. SHE: (FADES UP) ... and 2. while I'm at the hospital
right.
don't forget to buy milk for Light n' Lively.
the kids . . .

7. SHE: Of course, it's got 8. And it's convenient for 9. SHE: You'll only have to
more protein and calcium. you. (SHE DRINKS) HE: remember one kind.
(LOOKS UP PUZZLED)
MMK -A

12. From Sealtest

11. Light n' Lively Low-Fat
Milk: 20% more milk protein
and calcium.

Photoscript of Finished Commercial

Showing how closely the final script matched the original.

Courtesy: Sealtest Foods

Advertising Agency: N. W. Ayer & Son, Inc. New York

433
 434 3. Rely on the video to carry more than half the weight. Being a
Creating
visual medium, television is more effective at showing than
the
Advertising telling.
4. Use short, everyday words in the audio. Sentences should be
short, sentence structure uncomplicated. No more words should
be used than necessary to round out the thought conveyed by the
picture.
5. Avoid static scenes. Provide for camera movement and changes
of scenes.
6. Don’t cram the commercial with too many scenes lest the viewer
become confused. A scene should seldom be less than four sec¬
onds long.
7. Superimpose in lettering the basic theme line over scenes in the
commercial, including the final scene, if practical.
8. Be sure that transitions are smooth from scene to scene. Conceiv¬
ing the commercial as a flowing progression makes it easier for
the viewer to follow. Proper use of opticals [discussed later] can
add to the smoothness.
9. Television is a "medium of closeups.” Avoid long shots. Even the
largest television screens are too small for extraneous detail in
the scenes of the commercial.
10. When timing the commercial, don’t just read it. Act it out. The
action usually requires more time than the words indicate. A
good rule is purposely to time the commercial short, as it in¬
variably runs a few seconds longer in actual production.2

Television Production

The task of converting a script and storyboard into a commercial that is ready
to go on the air is the province of television production. In charge of each
project is a television producer, completely responsible for the commercial
from the time it is approved until the time it is shipped to the stations. To
understand the nature of this effort, we first become acquainted with the chief
elements involved in producing a commercial, along with the procedures that
prevail.

Forms of Commercial Production

Commercials can be produced on films or on videotape; a small per¬

centage are delivered by an announcer [live).

2 Arthur Bellaire, TV Advertising, A Handbook of Modern Practice (New York:

Harper & Row, Publishers, Inc., 1959), pp. 75-76. Copyright, 1959, by Arthur Bellaire.
 Films. Most commercials are shot on color film. Films represent the
oldest form of showing motion pictures in color, and because of that, there is
a vast pool of highly skilled talent available for all phases of film commer¬
cials. Even artists who had been making documentaries and television specials
have moved over to the making of commercials. And for the same reason,
there are many experienced cameramen and other technicians available in the
making of films.
Films give a picture a soft quality. They are very versatile; they can
be used for distant shots, mood shots; they can be used for animations. In
films, you can reshoot a sequence, and then select the best shots in making up
your final film.
Thirty-five mm. films are the professional size used, along with
videotape, by national and top regional advertisers. Great advances have been
made in 16 mm. film, however. It is much less expensive than 35 mm. film
and is often used for test commercials. It is widely used by regional and local
advertisers.

Videotape. Often called just tape, this represents a method by which

picture and sound are recorded on one- or two-inch magnetic tape. It is a
newer process than film. Some regard tape as more brilliant and realistic than
film, its audio quality better. Its chief advantage is that it can be played back
immediately, permitting the work to be checked at once, and retakes made, if
necessary, while the actors and staff are all assembled. There is a big saving
of time in the editing, too, with computerized editing cutting the time of that
operation by as much as 90 percent. Commercials shot on film can be put on
videotape, at a great saving in time, without loss of quality. Commercials can
be recorded in the morning, and if necessary duplicates {dubs) can be sent
out that night.
Tapes cost somewhat more than film prints, but whereas a film can
safely be replayed up to 25 times, a tape can be replayed a seemingly endless
number of times, preserving the reproduction quality. The cost is about the
same as for film; the big advantage is speed.

Live. A commercial that is broadcast directly by a local personality,

and not from film or tape, is a live commercial. Not many are being used
today. They are chiefly used on a station that offers a live news show, by a
popular personality. In such instances, the station supplies and specifies all
the facilities and directions—how many cameras on the stage, the size of the
stage, even the talent involved. The producer’s main responsibility is to see
that all props, artwork, and products are in the correct hands, and to super¬
vise the rehearsal. And, most important, to make sure that any props or
products used for a demonstration work properly. They have been known
not to.
 436 Since a live commercial is not prerecorded, it may be desired to make
Creating
the
a record of it when broadcast. That can be done with a kinescope—a filmed
Advertising recording of live images and sounds emanating from a television monitor,
made for future use, or merely as a record.

Opticals

Opticals are any variations of the picture that can be achieved during
or after the shooting. The number of such effects is endless. The reader will
recognize from his own viewing experience the most common forms:

The most used effect is the cut, where one scene abuts the next.
The dissolve is an overlapping effect—one scene fading out as the
next one fades in, usually indicating a passage of time.
To freeze a picture is to hold it still on a frame.
To zoom is to change rapidly from a long shot to a closeup, maintain¬
ing the subject or scene in focus.
To superimpose is to place one scene, or lettering, over another.

Opticals also include any special artwork, titles, or credits that may
be superimposed over a scene.

The Sound Track

The sound track of a commercial can be recorded at the time of pro¬

duction of a film or tape job, as in the case of people speaking or singing their
parts in perfect synchronization, or in recording a live orchestra. But often
the sound is recorded before or after the actual production.
When the sound track is recorded in advance, the film or tape is shot
to fit the sound track—a technique used when somebody or something has to
move or dance to a specific beat. It also gives assurance that the scene being
shot will not be too long or too short. The post-shooting technique for re¬
cording sound is used when the commercial has been edited, and a music or
sound-effect or voice track is desired to highlight certain scenes or eventual
optical effects.
The various sounds are mixed together into one final sound track,
which will be joined to the final film, or tape.

The Union Scale

One of the first facts of life of which one becomes aware in tele¬
vision production is that it is a highly unionized business, with rate schedules
spelled out for every step.3 To show how complex and sometimes amusing

3 The chief unions involved are the American Federation of Television and Radio
Artists (AFTRA), the Screen Actors’ Guild (SAG), and the American Federation of Mu¬
sicians (AFM).
these provisions might be, we have the instance of a young woman hired as
a background performer for a swimming-pool scene. She gets paid a daily
rate as a swimmer. If, prior to shooting, she is called upon to get into a bathing
suit to see how she looks, there is a fitting fee. If she uses her own suit, there
is a wardrobe maintenance fee. Having makeup or oil applied to more than
50 percent of her body calls for an extra fee. For diving she gets paid a fee
the rate of which depends on how high the board is.
It costs much more to have an announcer seen on the screen as he
speaks than if he speaks his lines offscreen. There is one rate for a group
singer who sings four bars or less; a higher rate for singing five bars or more.
For such reasons, a producer is careful in deciding how many actors he needs,
and precisely what he really needs each for.

Residual fees. In addition to a flat payment for services rendered

based upon time charges, a performer is paid a fee, called a residual, on net¬
work commercials, every time the commercial is shown. In spot, he receives
one residual payment every 13 weeks, the amount depending upon the number
of cities in which the spots are shown. A producer has to plan the commercials
so that a minimum number of residual charges are incurred.

The Production Studio

The making of a commercial usually takes place in a film studio or

tape studio, and in a sound-recording studio. The appointment of a studio for
a commercial entails more than the rental of a place to shoot the picture and a
projection room to show it on a screen. It includes the services of a staff,
headed by a studio director and a cameraman (the chief reason many pro¬
ducers will select a particular studio). It also includes the services of a team
of electricians and other needed technicians. Studios are equipped to do the
editing, although separate editing services are available.
Most studios are in Los Angeles, New York City, and Chicago, cities
where there is also the greatest concentration of talent. Advertisers who use
studios in the other cities, however, have one great advantage—their costs are
usually much lower. Studio time is costly. (In smaller cities, the local station
may do the production for local advertisers.)

The Making of a Commercial

The producer. When an advertiser approves a budget for television

advertising, many wheels start to turn; the chief decision is the appointment
of a producer. He will be responsible for the commercial from the time it is
approved until the time it is ready to go on the air. Large agencies have a num¬
ber of producers on a staff assigned to various accounts. Many producers also
work on a free-lance basis.
 438 The script and storyboard. A writer and an art director will be as¬
Creating
the
signed as a team to create the commercials on a project that may range from a
Advertising 10-second local station break to the full sponsorship of a network special,
the latter entailing six minutes of commercials. The producer may be asked
to sit in with the writer and art director to consult on the practicability of vari¬
ous ideas discussed.

The estimate. The producer’s first real work begins with getting an
estimate of costs. He may send the storyboards to three studios for estimates of
their part of the work, considering, in each instance, the quality of their work
and their skill.

DPX No. 131

(JWT) J. Walter Thompson Company
CLIENT:
TELEVISION PRODUCTION ESTIMATE
CC CLIENT CODE JOB/EST. NJM

XYZ Corp
N 1
1
3
1
2 4
■ 1
6
1
4 3 2
1
1
PHOO'JCT: 1 4- e 7-12
Breakfast Cereal TYPE EST. DATE RE V IS ION DATE REV.« S
* MO. DAY YR. MO. DAY YR. *
DESCRIPTION: " i;2 |l ,2 |2
13 19-19 19-19
Ill
20-2' 22
0
•DO NOT FILL IN-ECP INFORMATION
35mm film, color PROO. tf CLIENT REFERENCE NUMBER(S)

JOB ORDER NO. COMM. CODE NO.

:60 commercial

: 30 commercial

A TV Production Estimate

CARD WHOLE DOLLAR

DESCRIPTION OF COST ELEMENTS NO. TC » AMOUNT ONLY
r 1
Cxj
<*
O
O

PRODUCTION RFL Productions, Inc. 40

COLOR CORRECTION 41 300.

ARTWORK 42 550.
WARDROBE/PROPS 43 275.

EDITORIAL 44 3,250.
MUSIC Stock library score 4b 500.
TALENT: PAYROLL 2 or camera performers, 1 voice over announcer 47 374.
PENSION & WELFARE ( 6.0 % OF TALENT PAYROLL) 47 24.
COMMISSION ABLE **
MISCELLANEOUS
••Write-in appropriate de-

from list given below.

DO NOT
TOTAL COMMISSI ON ABLE COSTS KEYPUNCH 17,673.
AGENCY COMMISSION ( 15 % 0F ABOVE COSTS) 81 2,651.
LOCATION EXPENSE (TRAVEL & MAINTENANCE) 70
EMPLOYER'S TAX ( % OF TALENT PAYROLL) 76 ~ w.—
SALES TAXI 7 % OF TAXABLE AMOUNT $ 3,425* ) 76 240.
NON-COMMISSION ABLE
MISCELLANEOUS
••Write-in appropriate de¬
scriptions and numbers
from list given below.

TOTAL ••, H 20,593.

COMM. M:SC. WRITE-INS NON-COMMISSIONABLE MISCELLANEOUS WRITE-INS

31 Outside Service* 70 Travel Expense 73 Shipping end Oelivery 75 Storage Charges
34 Other commissioneble 71 Overtime (other than location) (Inc. postage & messenger) 76 Other Non-commissionable
39 Contingency 72 Telephone and Telegraph 74 Outside Services 79 Contingency

NOTES: THIS ESTIMATE IS BASED CN PRESENT INFORMATION ACTUAL COSTS OF INTANGIBLE OR UNKNOWN ELEMENTS THAT
ARE PRESENTLY DIFFICULT TO ESTIMATE WILL BE REFLECTED IN OUR BILLING AND/OR IN REVISED ESTIMATES:

*New York Sales Tax

Approved By:. Prepared By:

CLICNT SIGNATURf

DEPT. NO. Courtesy:

J. Walter Thompson Company
 The estimate is designed to cover all costs of the storyboard as pres¬ 439
The
ently planned. But invariably ideas and suggestions, including those of the Television
Commercial-
advertiser, arise in the course of the work. For all changes made, a supple
Creation and
mentary estimate of costs will be submitted for approval. Strict adherence to Production
this procedure can save much unpleasantness later.
There is a wide range in the costs of commercials. There are many
opportunities for saving money in production, and for getting better effects
at no more cost. A knowledgeable advertiser reviewing a storyboard may ask
questions such as those cited by H. C. Robinson, of the Liggett & Myers Com¬
pany, who said:

There are many things, too, which reveal themselves in a story¬

board which a well-educated advertiser might care to relate to costs.
For example: Are there enough people or too many people employed
in the commercial to make it work creatively? What are the union
scales for these people? Are there any overscale? If so, why? What
optical effects are indicated? Do they enhance or detract from the
selling message? Should more be added? What about music? Will it
be an original music track? What kind of musical effect is planned?
How many musicians are contemplated? The sets? Are they to be
constructed from scratch or rented? Is ample time allowed for the
construction? Where is the commercial to be shot? In a studio or on
location? To what extent is travel involved? Weather?
All these questions (and there are many more) need not be discussed
at each storyboard session, but they should be somewhere in the mind
of the advertiser who reviews the board initially. As a matter of fact,
if the commercial is properly planned and if we have a TV commer¬
cial cost-oriented advertiser, the answers to most of the questions are
apparent in reviewing the storyboard.
I must mention here that overtime often makes commercials cost
more than they should. There are many people and many events which
might cause unnecessary overtime. The important thing is that the
man who pays the bills should be aware of what does or does not, can
or cannot, cause this expenditure.4

The preproduction meeting. The most important meeting in the

life of the commercial is the preproduction meeting, called by the producer.
It will include the director of the studio selected for the job, and whichever
of his assistants he asks to join the meeting: the director, a representative of
the advertiser who has authority to make decisions, the agency’s account
executive, the writer, the art director, and anyone else the producer deems
important enough to be present.

4 H. Copland Robinson, "Controlling the Cost of Television Production,” in The

Advertising Budget (Association of National Advertisers, Inc., © 1967), p. 100.
 440 The purpose of the meeting is to review the storyboard, panel by
Creating
the
panel, and resolve all questions of handling and detail, as action, scenery,
Advertising camera angle, lighting. The age and type of the actors will be decided, and
the type of announcer. The casting director will know the type of talent to
select, usually working through a talent agency, which sends up candidates
for screening. The musical scoring will be planned. Everyone is to understand
exactly what effects are desired, and what he is to do.

Television Commercial Estimate

Agency_Estimate #_Date

Brand __Studio_

Description_

•PRODUCTION $ •PRODUCTION
Preparation $
CONTINGENCY Set Const., Strike
TALENT+ P&W Set Dressing
MUSIC Props, Materials
RECORDING Studio Rental
ARTWORK Shooting (# Days )
COLOR CORRECTION Overtime Hours ( )
WARDROBE Location Rental, Exp.
PROPS Crew
PHOTOSTATS Crew Travel**
MISCELLANEOUS Director's Fee
Net Total $ Camera Equipment
AGENCY COMMISSION Lighting Equipment
SALES TAX Sound Equipment
PAYROLL TAX Special Equipment
AGENCY TRAVEL*** Wardrobe
Hairdresser
GROSS TOTAL $ Makeup
Raw. Stock (+ Process)
(# Ft. )
LOCATION TRAVEL Animation
Editing
Crew** Talent Aqencv*** Other Rec., Transfer, Mix
# People _ Contract Requirmts.
# Days Optical Costs
Air Fare $ $ $ $ Editorial Labor
Per Diem $ $ $ $ Other
Other $ $ $ $ Net Total $
Totals $ $ $ $ Studio Markup (_%)

Total $ Total Studio Bid $

TALENT WEATHER CONTINGENCY: $

# On-Camera $ Per Day
# Off-Camera
# Extras
6'/2% P&W Remarks
Total $
Reprinted with permission
Agency Date from The TV Commercial
Cost-Control Handbook, by
Client Approval Date
Arthur Bellaire, Copy¬
right 1972 by Crain Com¬
munications, Inc.

A Detailed Production Estimate

Giving item for item estimates of the many elements that could go into TV pro¬
duction. Just reading the list of elements alone gives an idea of the potential com¬
plexity of producing a TV commercial.
 Casting and props. The producer may already have in mind whom 441
The
he wants for the different parts in the commercial; he may call a model studio Television
Commercial—
and specify his needs or preferences from their model book. The models for
Creation and
speaking parts will be given a screen test, reading portions of their parts, and Production
a choice will be made. Many large agencies have a casting director for this
task. Meanwhile, the studio property man will be getting scenery and props
together. If shooting has to be done at an outside location, arrangements will
be made.

Composer and musicians. If music has to be written for the script,

a composer will be called in. Arrangements also will have to be made for any
musicians needed.

Rehearsals and filming. Depending on the commercial, rehearsals

can be short and simple, or long and involved.
The producer and director will usually call a rehearsal if there is any
question at all regarding the spoken parts and action asked for in a script.

J. Walter Thompson Company

PRODUCTION SCHEDULE FOR SIXTY-SECOND 35MM COLOR TELEVISION COMMERCIAL

Client approves final script Friday, August 4, 1972

and storyboard

Monday - Thursday
Bids
August 7 - August 10

Client approves budget Friday - August 11

Pre-production, Casting Monday - Friday

August 14 - August 25

Shoot Monday - Tuesday

August 28 - August 29

Edit Wednesday - Thursday

August 30 - August 31

Client approves rough cut Friday - September 1

Record music Friday - September 8

Client approves answer print Friday - September 15

Ship air prints to stations Friday - September 22

Courtesy:
J. Walter Thompson Company
 442 Generally, all rehearsals take place prior to the day of shooting, with a
Creating
the minimal crew, to save time and money. On the actual shooting day, a full
Advertising (and expensive) crew is required.
Rehearsals often reveal things that do not work. For example, one may
discover that the copy is too long or too short, or that the performers may need
cue cards to help them memorize and deliver their lines, or a change in the
set is needed.
The rehearsal is a good time to check the products and packaging to
see if they are in the proper shape to meet the client’s standards. It is also a
good time to decide on the most attractive angles from which to shoot the
products.
The producer, director, and cameraman decide on the style of lighting
desired, ranging from soft and delicate to hard and harsh, depending upon
the needs of the script.
Some commercials involve many setups and scenes, complete with
a large cast. Often a first rehearsal is called for in such commercials, followed
the next day by a full-scale dress rehearsal. Performers have to be paid for
wardrobe and costume fittings and rehearsals, but it is still an enormous sav-
ing in the long run not to waste the time and money on the actual shooting day.
The shooting day is the director’s and the cameraman’s day. If all has
been properly planned in advance, the producer can keep his attention on
whether the production is on course, and not have to worry about details. The
studio, the director, and his assistants are really responsible for the shooting
day and its schedule, from early makeup and hairdressing calls to the me¬
chanics of lighting, shooting, and recording sound. Depending on how much
time is required to complete a commercial, the shooting day can range from
eight hours to all hours, but after eight hours the overtime charge goes into
effect.

Processing and editing. The film is processed in a day or two and is

screened as a first, or uncorrected, print, called rushes or dailies.
Scenes are selected from the dailies, cut up, and edited into a smooth¬
flowing work print known as a rough cut.
The rough cut is screened for the advertiser and agency for approval.
From the approved rough cut, an optical house makes negatives that
contain all the optical effects.
Meanwhile, the sound has been recorded.
A composite print is made of picture, opticals, and sound, called an
answer print.
The answer print is corrected for color, quality, density and synchroni¬
zation of sound. The approved answer print becomes the master print.
Duplicate prints of this are ordered for distribution to the stations scheduled.
The commercial is ready to go on the air!
 "Theme” NFS: 60

We know you’d like to sharethese ideas

ANNCR: We know you have pride in We know you have a brain and your
with hundreds of young men and women
yourself and in what your country can own ideas.
from all parts of this country.
be.

have opportunity for advancement, and We also know you put a price on these
We know you’d like to further your things. The price is your individuality.
thirty days vacation a year.
education, learn a skill.

We’re committed to el iminating unneces¬ signing in...and ’’makework” projects,

And you question the Army’s willing' in Today’s Army, you’ll find more ma¬
sary formation...skin-head haircuts...
ness to pay this price. Today’s Army ture personnel policies at every level.
is willing to pay this price. ...signing out...

880-243-6000
mcowwcttcm» wm>
Today’s Army
wants to join you
VOMVAFn iw ut IIMITFO STATFS »w'

If you’d like to serve yourself, as you Today’s Army wants to join you.
L For the location of your nearest Army
representative, call 800-243-6000,
serve your Country, toll-free.

The Army Goes to TV

Television enables the U.S. Army to present in the short space of one commercial
the many facets of its story, to get volunteer enlistments.
Courtesy: Department of the Army
Advertising Agency: N. W. Ayer & Son, Inc.
ANNOUNCER: We made this Half is coated with TEFLON.
special pan to make a Half isn’t.
ooint.

Let’s cook some scrambled

eggs

And now let’s wash. The TEFLON side even starts See, the TEFLON side
off cleaner because almost really is easier to clean.
nothing sticks to it.

m
But the other side ... well, you get the point. Get cookware certified
TEFLON II and be on the
winning side.

An End-Product Advertiser Uses TV

Television provides a good opportunity to demonstrate the advantages of pots
lined with Teflon II.
Courtesy: du Pont
Advertising Agency: N. W. Ayer & Son, Inc.
 ✓

SPOT SCHEDULING INSTRUCTIONS

To: OPERATIONS DESK (station call letters) DATE: __

AGENCY: REVISION NO.: _

ADVERTISER: Issued by: _

BROADCAST OPERATIONS DESK

FOR: ___
(DURATION OF COMMERCIAL SCHEDULE) Telephone: _
(Area Code) (Tel. #)

schedule the following commercials in accordance with facilities contract:

PRODUCT ISCI TITLE (Optional) LENGTH

Inventory of Commercials:

Prints ( ) Tapes ( ) of commercials are:

(SUGGESTION TO AGENCY: DESIGNATE COMMERCIALS WHICH ARE

ON HAND, EN ROUTE OR ENCLOSED)

Disposition of Commercials:

Following completion of schedule, prints should be:

(SUGGESTION TO AGENCY: DESIGNATE'WHETHER COMMERCIALS SHOULD BE

DESTROYED, RETURNED OR HELD FOR FURTHER
INSTRUCTIONS)

Questions regarding instructions or delivery of commercial material should be

addressed to Broadcast Operations Desk above.

These instructions do not constitute an order for time. Questions regarding time
purchase and/or product allocation should be addressed to the time buyer or your
station representative.

The agency time buyer for this schedule is:_•

Courtesy: American Association of Advertising Agencies

Photoscripts. After a commercial has been made, advertisers often

have a photoscript made, consisting of the actual pictures made from the
original script or storyboard. This provides them with a printed record of the
commercial. It also is useful for sales promotion and publicity purposes.

Retail TV Production

The problems of TV production for retail stores are quite different in

many respects from those of the national advertiser, which we have chiefly
been discussing. How resourcefully retailers handle their special TV produc¬
tion needs is discussed in Chapter 27—"Retail Advertising.

443
 444 Review Questions
Creating
the
Advertising 1. Give a brief definition, explanation, 5. What are some of the suggestions
or description of the following: for writing the commercial that were
a. Video g. Superimpose discussed ?
b. Audio h. Sound track
6. What is meant by television produc¬
c. Storyboard i. Residual
tion?
d. Opticals j. A rush
e. Wipe k. Rough cut 7. Describe the usual way of producing
f. Freeze l. Master print a commercial with a musical back¬
ground.
2. Describe the three ways of physically
broadcasting a commercial. What are 8. What is discussed at a pre-production
the advantages and limitations of meeting ?
each ?
9. Which commercials have most im¬
3. What is the responsibility of a TV pressed you recently ? What were
producer? their unique features ? What were
the products advertised? What did
4. The book offers nine guidelines to
they tell you about the products ?
the creation of the commercial. How
Would you say the commercials did
many can you describe? Can you cite
a good selling job?
any recent commercials you have seen
that fit into these categories?

Reading Suggestions

Bellaire, Arthur, The TV Commercial McMahan, Harry W, "BST: A Way To

Cost Control Handbook. Chicago: Get Your Creative Problems Out of
Crain Communications, Inc., 1972. the Revolving Door,” Advertising
Bellaire, Arthur, TV Advertising. New Age, June 14, 1971, pp. 78-80.
York: Harper & Row, Publishers, Media/Scope, "What Is the Best Length
1959- for a T.V. Commercial?” October
Book, Albert C., and Norman D. Cary, 1964, p. 63 ff.
Television Commercial. New York: National Association of Broadcasters,
Decker Communications, Inc., 1970. The Television Code, current ed.
Cimbalo, Guy, A New Approach to Tele¬ Robinson, H. Copland, "Controlling the
vision Advertising. New York: Lion Cost of Television Production,” in
House Publishing Co., 1966. The Advertising Budget. New York:
Diamant, Lincoln, Television’s Classic Association of National Advertisers,
Commercials—The Golden Years 1967.
1948-19b 8. Hastings House, Pub¬ Ross, Wallace A., Best TV & Radio
lishers, Inc., New York, 1971. Commercials. New York: The Inter¬
Galanoy, Terry, Down the Tube. Chi¬ national TV Commercials Study
cago: Henry Regnery Company, 1970. Foundation, 1971.
Hilliard, Robert L., Writing for Tele¬ Wainwright, Charles A., The Televi¬
vision and Radio. New York: Has¬ sion Copywriter. New York: Hastings
tings House, Publishers, Inc., 1967. House, 1966.
 19
The Radio Commercial-
Creation and Production

Writing the Commercial

The beginning of an effective radio commercial is agreement between

management and writer about the specific sales message to be left with the
listener. Once that is clear, the whole world of radio imagery and technique
is open to the writer.
He has freedom to think in terms of place and people; there are no
stage or scenery costs here. He sees in his mind something happening some¬
where, or some action taking place with which the listener can identify him
self, with the aid of any sound to set the stage—a car door slamming, a phone
ringing. He can picture 80,000 people at a bowl game, with a ten-second roar
of a crowd.

Elements of Effective Radio Commercials

In a major research project (the Yankelovich Report, sponsored by

the ABC Radio Network), four key elements were isolated that proved to be
crucial in differentiating effective commercials (those that stimulate buying
interest) from the less effective ones. Briefly stated, they are:

1. Meaningful content
The listener must have the feeling that he has gained some infor¬
mational reward out of listening. This information does not have
to be new or startling—it may simply reinforce something already
known.
2. Stimulation of product-plus associations
This refers to the ability of a commercial to arouse thoughts and
feelings that relate to the commercial’s central message. A spa¬
ghetti-sauce commercial should get the listener to thinking about
spaghetti for dinner rather than the size of the tomatoes in his
garden.

445
 10 sec.
3. Identification by the listener
musical logo Identification can be established in many ways—the use of dia¬
logues in which the product is discussed, a straightforward presen¬
tation of the product’s advantages, or a unique piece of music that
instantly identifies the product to the listener.
4. Good fit with listener’s expectations
35 sec. CO Commercials scoring well in the results fitted in with the ideas,
body copy c feelings, and images the listener had already built up about the
o
o
0)
product. The commercial must be believable.
(/)
o
CD The Radio Advertising Bureau offers the following guidelines for
good radio copy writing:

10 sec.
—Know what you are writing about.
live tag giving
local retailer —Talk about customer benefits—what is in it for the customer, not
for the advertiser.
5 sec. logo
—Write action words, rather than passive ones.
Analysis of a —Omit unnecessary words.
60-second spot
—Mention the advertiser’s name as often as possible.
—Keep the message simple.

The commercial should be built around a single idea; the tendency

is to try to crowd in more. The first eight seconds are the crucial ones, for in
that time something must be said that makes the listener feel he wants to
continue paying attention. Most effective commercials are intimate, relaxed,
cheerful. Whatever style is used should be maintained throughout the com¬
mercial, to leave a sharp, single impression with the listener.

Timing of Commercials

The number of words in a commercial varies with the context and

the delivery needs. The average count is:

10 seconds 25 words
20 seconds 45 words
30 seconds 65 words
60 seconds 125 words

After the commercial is written, it is well to read it normally, to catch

tongue twisters, insure normal flow, and time it exactly.
Sixty-second commercials are often created to include a 10-second tag
ending by the announcer directing listeners to go to a local dealer, with name
and address given; including also, at times a musical logo at the beginning
and end.
 447
Musical Commercials The Radio
Commercial—
Commercials are often set to music especially composed for them, or Creation and
Production
adapted from a familiar song. A few bars of distinctive music, if played
often enough, may serve as a musical identification of the product (a musical
logotype), usually ten seconds.
Jingles are popular ways of making a slogan that rhymes memorable
—provided the slogan contains a real selling message.
This brings us to the question of musical rights. A melody is in the
public domain, available for use by anyone, without cost, after the copyright
has expired. (A copyright runs for 28 years, and is renewable once for 28
years.) Many old favorites and classics are thus in the public domain and have
been used as themes by advertisers. In using a tune in the public domain,
however, one runs the risk of using the same tune already being used by many
others.
Popular tunes that are still protected by copyrights are available only
by agreement with the copyright owner. The result may be a good familiar
tune, but it may be costly.
An advertiser can have an original tune created by a composer. This
becomes the advertiser’s own property and gives the product its own musical
personality.

Commercial Categories

In their study to suggest a convenient classification system for radio commer

cials, Ross and Landers drew upon the library, containing over 10,000 com¬
mercials, of the Radio Advertising Bureau.* Their list follows.

1. Product Demo—Communicating how a product is used, or what

purposes a product serves.
2. Voice Power—Use of a unique voice adding special qualities to
the copy. May blend in other sounds or music, but the power of
the commercial is essentially in casting of the voice.
3. Electronic Sound—Through synthetic sound-making machines
or through devices that alter sound, commercial attempts to es¬
tablish original product-sound associations.
4. Customer Interview—A spokesman for the product plus a cus¬
tomer, discussing the merits and advantages of the product or
service. Often the most rewarding interviews are those done
spontaneously.

1 Wallace A. Ross and Bob Landers, "Commercial Categories,’’ in Radio Plays the
Plaza (New York: Radio Advertising Bureau, 1969), p. 29.
 448 5. Humorous Fake Interview—Variation of the customer interview
Creating
in humorous fashion. Has the advantages of preplanning plus
the
Advertising the interest an interview generates.
6. Hyperbole or Exaggerated Statement—Use of exaggeration, ex¬
treme understatement or overstatement to arouse interest in
legitimate, often basic product claims that might otherwise pass
unnoticed. Can often be a spoof.
7. Sixth Dimension—Compression of time, history, happenings
into a brief spot. Can often be a sequential narrative ultimately
involving listener in future projections.
8. Hot property—Commercial that latches on to a current sensa¬
tion. Can be a hit show, a performer, or a song. Hit is adapted
for product.
9. Comedian Power—Established comedians do commercials in
their own unique style. Has advantages of humor and inferred
celebrity endorsement.
10. Historical Fantasy—Situations or historical characters are revived
to convey product message.
11. Sound Picture—Sound used to help put the listener into a situa¬
tion by stimulating his imagination. Sounds are usually easily
recognizable to facilitate listener involvement.
12. Demographics—Commercial appeals particularly to one segment
of the population (an age group, interest group, etc.) through
use of music, references.
13. Imagery Transfer—Spots reinforce effects of other media through
use of musical logos, or other sound associations identifiable with
a particular campaign for a particular product.
14. Celebrity Interview—Famous person provides celebrity endorse¬
ment of the product in informal manner.
15. Product Song—Music and words combine to create musical logo
as well as to sell product. In style of popular music with orches¬
tration.
16. Editing Genius—Many different situations, voices, types of music,
sounds combined in a series of quick cuts to produce one spot.
Every cut contributes in some way to strength of message.
17. Improvisation—Copywriter conceives situations that might be
good backdrop for a product and then allows performers to
work out the dialogue extemporaneously. Requires postediting
of tapes to make spot cohesive.

In addition to the commercial types above, there are of course Straight

Copy—text read by station announcer—and Ad Lib from Fact Sheet.
The following examples of effective radio commercials reveal the
flexibility in the creation of commercials:
A commercial that quickly sets the stage for a series of situations. Note the economy
and choice of words with which each is described. A problem and solution com¬
mercial in which the reader is involved.
 CLIENT: Getty Oil Company LENGTH: 60 sec.

PRODUCT: Getty Premium Gasoline

AGENCY: DKGinc.

TITLE: ’GORILLA"

(SFX: CAR DRIVING) (SFX: GORILLA SNORTING IN BACKGROUND)

1ST: Ah, this is crazy. The zoo should have given us a truck.

Who ever heard of transporting a gorilla in a car?

2ND: Don't worry. He's chained down good and tight. Just don’t

drive past the Empire State Building.

1ST: You just keep feeding him those bananas and we’re all right.

2ND: Look at him eat. I’d rather clothe him than feed him.

1ST: Look at this gas gauge. Didn't I give you money to fill it up?

2ND: Yeah, but I had to buy a crate of bananas. I only had two

dollars left for gas.

(SFX: CAR COMING TO A CHOKING HALT)

1ST : Ah, now you done it. No gas and a car full of gorilla^

A commercial that combines humor, dialogue, and surprise to lead into the main
message, delivered straight by announcer, and leaves the listener smiling. To see
the contribution a commercial concept can make in delivering a sales story, just
try reading the announcement by itself and see what attention it would hold.
2ND: (NERVOUSLY) Ooooohhh. . . .

1ST: Alright, take it easy. We’re just out of gas.

2ND: We're out of bananas too.

(COL. BOGEY MARCH MUSIC)

ANNOUNCER: These days a couple of bucks worth of gasoline

doesn’t seem to take you very far.

But one will take you further than the rest.

Getty Premium.

At Getty we sell only Premium gasoline.

Over 100 octane.

But we sell it for a few cents less per gallon than

most other major premiums.

So at Getty, you get more gas for your money.

(SFX: HONKING HORNS)

1ST: You stay with the gorilla. I’ll go for gas.

2ND: You stay with the gorilla. I'll go for bananas.

CLIENTi Pepsi-Cola Company LENGTH* 60 sec.

PRODUCT* Pepsi-Cola

AGENCY* Batten, Barton, Durstine, & Osborne, Inc.

TITLE* B. J. THOMAS SINGS FOR PEPSI-COLA

LYRICS

There's a whole new way of living. Pepsi helps supply the drive. It's

got a lot to give to those who like to live 'cause Pepsi helps 'em come

alive. It's a Pepsi generation cornin' atcha going strong. Put yourself

behind a Pepsi, If you're livin', you belong. You've got a lot to live

and Pepsi's got a lot to give. You've got a lot to live and Pepsi's got

a lot to give.

Here is a commercial that uses contemporary music with a catchy tune, and a popu¬
lar singer. The lyrics are sharp, crisp, and directed toward the theme idea, "You’ve
got a lot to live and Pepsi has a lot to give’’ . . . directed to the younger age group
in. appeal, language, and music.
 453
Radio Production The Radio
Commercial—
There are two ways of delivering a radio commercial: live and prerecorded. Creation and
Production
They may be combined.

The live commercial. A live commercial is one delivered directly in

person by an announcer or by a station personality. It can be delivered from a
prepared script or from a fact sheet supplied by the advertiser, in which the
speaker can deliver the commercial in his own way, with his own warmth and
personality and enthusiasm. Sometimes a musical introduction, or a musical
sign-off with the brand name (a musical logotype) is used.

MIRACLE WHITE
Non Polluting Detergent
(contains no phosphates)
(no NTA)
FACT SHEET (no enzymes)

...NEW MIRACLE WHITE POWDERED DETERGENT IS NON POLLUTING

A Fact Sheet used

...IT IS A NEW BREAKTHROUGH FORMULA that contains none of the polluting
for stations with phosphates that stimulate the growth of algae and weeds that choke out
popular local an¬ healthy plant life and eventually destroy sources of life-giving oxygen.
nouncers, as a
guide for deliver¬ ...NOW! Wash without regret!

ing the commer¬

...NEW! Powerful formula has bleach, borax and brighteners to give you a clean,
cial in their own
bright wash the first time and every time!
style.

...IT CONTAINS NO ENZYMES!

...IT IS SAFE! Its unique sudsing formula gives you powerful yet safe cleaning
results for all your washables without fear of damaging fabrics or washing

machine.

...MIRACLE WHITE NON POLLUTING DETERGENT IS BIODEGRADABLE...especially formulated

to actually destroy itself by bacterial action. No foam remains to impair
rivers, lakes or septic tanks.

...MIRACLE WHITE NON POLLUTING DETERGENT is effective in both cold and hot
wash water for a clean and bright wash.

...MIRACLE WHITE promises you a clean, bright wash the first time, you must
be satisfied 10(# with the NON POLLUTING DETERGENT or receive double your
money back, details are on the package.

...Now you can wash without regret.

Courtesy: Beatrice Foods Company

Advertising Agency: Spot Radio Advertising
 4H The advantage of a live announcer is that he may have a popular
Creating
following; listeners tend more readily to accept what he tells them. A disad¬
the
Advertising vantage in having him ad lib is that he may not stick to the script, or may omit
some important selling points. For a large national campaign where per¬
sonalities’ capabilities are not all known, or where a complete control of the
commercial content is desirable, advertisers usually prefer to use a prerecorded
commercial, which they produce and supply.

Prerecorded commercial. A prerecorded commercial can be as simple

as the delivery of one announcer, or as complex as having more than one an¬
nouncer, with a singer and sound effects and orchestra.
For making a radio recording, a radio producer will be assigned. His
first task will be to set up an estimate and get a budget approved. His con¬
tinuing responsibility will be to keep within that budget. He will select a
recording studio, a casting director if he feels he needs one, and a musical
director and an orchestra, if they are needed. The musical director may write
his own music and arrangements, or may select the music from one of the
musical libraries. The whole operation can be greatly simplified, depending
on budget and complexity of the script.
A recording studio will be hired by the day or half day, or several
days, depending on how many commercials are to be produced. A cast is se¬
lected, gathered, and rehearsed. When the producer feels they are ready, the
commercial is acted out and recorded on tape.
The music and sound may be taped separately, and then mixed with
the vocal tape by the sound-recording studio. When all this has been done, a
master tape of the complete commercial is produced.

Duplicates. A popular way to make duplicates of a commercial is by

playing the master tape on a reel of 14-inch tape. Such tape recordings have an
exceedingly long life. They are often cased in a tape cartridge for the increas¬
ing number of stations that operate with such cassettes.
Another form of duplicate is made by recording the master record on
an acetate record, referred to as an acetate dub or just an acetate. This is a
comparatively soft record, made one at a time, useful when a record is needed
quickly, but each acetate is good for no more than 50 playings.
The most popular form of record is a pressing, also known as an elec¬
tric transcription (e.t.), or just transcription. Here the master tape is played
onto a master duplicate record. This is very hard—over a thousand duplicate
records can be pressed into it—hence the name. These records are very sharp,
can be played an infinite number of times, and are very economical when a
quantity of duplicates is needed.
Thus we have three forms of duplicate commercials, all made from
the master tape—the tape, or cartridge cassette; the acetate, fast if only a few
are wanted for short runs; and the pressing, a most serviceable record for large
schedules.
 433
Review Questions The Radio
Commercial—
1. Give a brief definition or explanation 4. Discuss the comparative advantages Creation and
and disadvantages of pre-recorded Production
of:
commercials, live straight copy com¬
a. tag ending
b. musical logotype mercials, and ad lib commercials

c. jingle from a fact sheet.

d. public domain 5. Describe the three forms of dupli¬
e. sound picture cate commercials.
f. transcription
6. Which recent radio commercials
2. Describe the key elements that, as have impressed you most favorably?
research shows, differentiate effec¬ What were the unique features of
tive from less effective radio com¬ the commercials? What did they ad¬
mercials. vertise? What did they say about its
3. Cite examples from current radio
commercials for any six of the spe¬
cific classifications of radio commer¬
cials that are mentioned in the text.

Reading Suggestions

Hilliard, Robert L., Writing for Tele¬

Advertising Age, "Impressible Radio En¬
vision and Radio. New York: Has¬
ters Phase Four: A New Dimension
tings House, Publishers, Inc., 1967.
in Commercials," January 8, 1968,
pp. 49-50. Ross, Wallace A., Best TV & Radio
Commercials. New York: The Inter¬
Felsenthal, Norman, G. Wayne Shamo,
national TV Commercials Study Foun¬
and John R. Bittner, "A Comparison
of Award-Winning Radio Commer¬ dation, 1971.
cials and Their Day-to-Day Counter¬
parts," journal of Broadcasting,
Summer 1971, pp. 309-315.
 V
THE ADVERTISING
CAMPAIGN
 20
Trademarks
Packaging

TRADEMARKS
Never before has a good trademark been so important as in this age of self-
service. The trademark directly affects the distinctiveness of the product, and
therefore the ease with which it is remembered, and its sales. The trademark
often becomes the most important asset of a company, growing more valuable
each year. A whole body of law has been developed to protect this property
against infringers. Getting legal protection is the province of the attorney.
However, it begins right with the creation of the trademark itself. Hence, in
creating or considering a trademark, it is important to understand some of the
basic legal ground rules.

What is a Trademark?

A trademark is any symbol, sign, word, name, or device, or combination of

these, that tells who makes a product or who sells it, distinguishing that
product from those made or sold by others. Its purpose is to protect the public
from being deceived, and the owner from unfair competition and the un¬
lawful use of his property.
A trademark invariably consists of, or includes, a word or name by
which people can speak of the product—"Do you have Dutch Boy paint?
That word or name is also called a brand name. A trademark may, but does
not have to, include some pictorial element.
A trade name, on the other hand, is the name under which a com¬
pany does business. General Mills, for example, is the trade name of a com¬
pany making a cake mix whose trademark (not trade name) is Betty Crocker.
The terms trademark and trade name are often confused.
A product can have several trademarks, as Coca-Cola and Coke.
Chief among the basic legal requirements of a trademark are the fol¬
lowing:

439
 460 1. The trademark must he used in connection with an actual product.
The
The use of a design in an advertisement does not make it a trademark, nor
Advertising
Campaign does having it on a flag over the factory. It must be applied to the product
itself, or be on a label or container of that product. If that is not feasible, it
must be affixed to the container or dispenser of it, as on a pump at a gas
service station.

2. The trademark must not he confusingly similar to trademarks on

similar goods. It should not be likely to cause the buyer to be confused, mis¬
taken, or deceived as to whose product he is purchasing. The trademark should
be dissimilar in appearance, sound, and significance. Cycol was held to be in
conflict with Tycol, for oil; Air-0 was held in conflict with Arrow for shirts;
Canned Light was held in conflict with Barreled Sunlight for paint, because
of such possible confusion.
The two products involved need not be identical. The marks will be
held in conflict if the products are sold through the same trade channels, or
if the public might assume that a product made by a second company is a new
product line of the first company. So-Soft tissues, for example, was held in
conflict with Snow & Soft paper napkins for this reason. BIG BOY! powder
for soft drinks was held in confusion with BIG BOY stick candy.

3. A trademark must not he deceptive. A trademark must not indi¬

cate a quality not in the product; it must not be misdescriptively deceptive.
Words that have legally been barred for this reason include Lemon soap that
contained no lemon, Half-Spanish for cigars that did not come from Spain,
Nylodon for sleeping bags that contained no nylon.

4. A trademark must not he descriptive. "I have often noticed,”

the head of a baking company might say, "that people ask for fresh bread. We
will call our bread Fresh; that’s our trademark. How nice that will be for us!”
But when people ask for "fresh bread,” they are describing the kind of bread
they want, not specifying the bread made by a particular baker. To prevent
such misleading usage, the law does not protect trademarks that are merely
descriptive, such that any producer might apply them to his product. This
includes words that describe the nature, quality, structure, merits, or uses of
a product. Aircraft for control instruments and Computing for a weighing
scale were disallowed as trademarks for being descriptive. The misspelling or
hyphenating of a word, such as Keep Kold or Heldryte, does not make a non-
descriptive word out of one that, if spelled correctly, would be descriptive of
the product. However, although a word must not literally be descriptive, it
may suggest certain qualities, and we will touch upon this matter shortly.
 GENERAL
TIRE

pr**?T*? *• %$?
"»•• * x': *'
'P*m ■ &'' &■ & 7*

BBB. Log Cabin*

OWENS/CORNING

FlBERGLAS TRADEMARK (5)

Trademarks

A word alone, even if set in a standard type, can be a trademark. Often it is

formed into a design, or combined with one, to add distinctiveness and
memorability.

Forms of Trademarks

Dictionary words. Many trademarks consist of familiar dictionary words used

in an arbitrary, suggestive, or fanciful manner. "They must not be used in a
descriptive sense to describe the nature, use, or virtue of the product. Good
461
 462 examples of dictionary words that meet the foregoing requirements are Dial
The
soap, Glad plastic bags, Sunbeam toasters, Shell oil, and Rise shaving cream.
Werbung
Campaign The advantage of using words that can be found in the dictionary is that you
have so many from which to choose. The public will recognize the words; the
task is to get them to associate it with the product; but if you have done that,
the cnances of protection against infringement are good. (A problem may
arise with a manufacturer who has not had trademark experience and who
asks, "But what has that to do with my product?")

Coined words. The most prolific source of trademark ideas is words

made up of a new combination of consonants and vowels. Kodak is the classic
forerunner of this school of thinking. We also have Kleenex, Xerox, Norelco,
Exxon—the list is long. The advantage of a coined word is that it is new; it
can be made phonetically pleasing, pronounceable and short. Coined words
have a high rank for being legally protectable, but to create one that is dis¬
tinctive is the big challenge. (One drug company tried using a computer to
create coined words for its many new products. They were distinctive, but just
not pronounceable.)
When coining a word from a root word associated with a product,
there is always the danger that the basic word selected is so obvious that
others in the field will likewise use it, with the result that there is a confusion
of similar names. In one issue of the Standard Advertising Register, there were
fifteen trademarks beginning with Flavor or Flava. We also have Launder all,
Laundromat, Launderette; Dictaphone, Dictograph. But think of a fresh root
concept, and you have the makings of a good trademark.

Personal names. These may be the names of real people, such as

Elizabeth Arden; fictional characters, like Betty Crocker; historical characters,
as in Lincoln cars; mythological characters, as in Ajax cleanser. A surname
alone is not eligible as a new trademark; others of that name may use it.
However, names like Lipton’s tea, or Heinz foods, or Campbell’s soups have
been in use so long that they have acquired what the law calls a "secondary
meaning"; that is, through usage the public has recognized them as repre¬
senting the product of one company only. But a new trademark can have no
secondary meaning.

Geographical names. A geographical name is really a "place" name:

Nashua blankets, Palm Beach cloth, Pittsburgh paints. These names are old
trademarks, and have acquired secondary meaning. The law does not look
with favor on giving one man the exclusive right to use a geographical name
in connection with his new product as against others making similar goods
in that area. However, a name chosen because of the fanciful connotation of a
geographical setting, rather than to suggest it was made there, may make it
eligible for protection, as with Bali bras.
 Initials and numbers. This refers to trademarks such as RCA tele¬ 463
Trademarks
vision, AC spark plugs, J&B whisky, A.l sauce. Fortunes and years have been Packaging
spent in establishing these trademarks; hence they are familiar. In general,
however, initials and numbers are the hardest form of trademark to remember
and the easiest to confuse and to imitate. One issue of the Standard Advertis¬
ing Register listed the following numerical trademarks: No. 1, No. 2, 2 in 1,
3 in 1, 4 in 1, 5 in 1, No. 7, 12/24, No. 14, 77, and 400.

Pictorial. To reinforce their brand name, many advertisers use some

artistic device, as distinctive lettering (called a logotype), or a design, in¬
signia, picture, or other visual device.

Creating the Trademark

The use of a word for a trademark generally gives the owner the right to
express the idea in a variety of ways, as with a picture or symbol (such as the
trademark Green Giant for frozen and canned vegetables, and a picture of a
green giant for the same purpose). The total design can then be carried on
labels, cartons, packing cases, warehouse signs, and gasoline service stations,
both here and abroad. A trademark word or name is more apt to get quick
recognition if it is always lettered in a uniform style; this unit is called a
logotype. A test of a design is whether it is distinctive enough to be recognized
immediately in any size.

Creative Goals of a Trademark

Among the qualities desired of a trademark are the following:

Distinctive. Since the purpose of a trademark is to identify a

product, the overall attribute that a trademark should possess is that it be
distinctive. The trade directories are full of trademarks that play it safe and
follow the leader, with the result that one directory listed 89 Golds or Goldens,
75 Royals, 95 Nationals, and 134 Starsi The quest for distinction also
applies to designs, where the use of circles, ovals, and oblongs are common¬
place.

Simple, crisp, short. Good examples: Sanka coffee, Ajax cleansers,

Ritz crackers, Silex percolators.

Easy to pronounce, and in one way only. The makers of Sitroux

tissues changed their name to Sitrue; the makers of Baume Bengue changed
it to Ben Gay. To help customers pronounce Suchard, the makers created a
charming trade character called Sue Shard, and changed the name too. These
 464 companies made the best of their old trademarks. But there should be no
The doubt about the pronunciation of a new trademark.
Werbung
Campaign
Conveying an apt suggestion. Although a trademark cannot get
legal protection if it literally describes the uses, qualities, or advantages of a
product, it may suggest such attributes, as in the case of Downy fabric softener,
Band-Aid bandages, Accutron watch, Bisquick biscuit mix. The suggestive
trademark is a most popular form. It calls upon imagination to create it, and
it invokes the imagination of the buyer.
The great problem with suggestive trademarks is that they may so
easily go over that vague boundary that divides them from being descriptive.
Even experienced advertisers have this problem. The Sun Oil Company spent
upward of $30 million over a six-year period advertising its brand of gaso¬
line called Custom Blended, only to have the courts finally rule that it was a
descriptive term that any gasoline company could use.

Usable design. If a design is used, will it be usable and identifiable

when reduced to small black-and-white size? It takes a long time for the public
to associate a company name with a design; hence many are meant to be used
in connection with the product or company name, to help reinforce the iden¬
tification.

Having no unpleasant connotations, here or abroad. A trademark

should be avoided if it can be punned unpleasantly. It should not be offensive
abroad. The makers of an American car discovered its name meant "sudden
death” in one Oriental country where they had been trying to do business.

Having reviewed all the desirable attributes of the trademark, we come

back to the first question: Is it distinctive?

What ''Registering” a Trademark Means

In the United States, the first to use a trademark for a certain category of goods
has the exclusive right to it for those goods and for other goods that people
might think he made or sold. To let the world know he is using a trademark,
and to help establish the date he began using it, he can register it in Washing¬
ton with the Patent Office, which has a record of over a half million trade¬
marks. Registration is not obligatory (except for certain gold and silver
products). Federal registration applies only to goods sold in interstate com¬
merce. However, if, within five years, another man can prove, by means of
old ads or bills of sale, that he had been using the trademark prior to the
time when it was registered by another, he would have the rights to that
trademark over the man who had registered it. Nevertheless, most firms apply
 Protecting
Trademark Rights

,
The Dow Chemical
Company issued these
instructions to all who
have anything to do
with its advertising.
big S small t, y, r, o, f, o,a,m. (Please)

That’s the way we spell Styrofoam®. Always used correctly. This avoids confusing people
with a cap S. Styrofoam is a registered trade¬ about the true source of a product.
mark for the specific brand of polystyrene Please, hit that capital S when typing
plastic foam made only by The Dow Chemical Styrofoam or mark it UC on proofs. We'd be
Company. So it deserves the initial cap. most grateful. The Dow Chemical Company,
Like all trademarks, Styrofoam should be Midland, Michigan.

for federal registration. There is also state registration for those seeking
limited protection only.
Once a trademark has been registered, it should carry a notice to that
effect wherever it appears, such as ® next to the trademark, or "Registered,
U.S. Patent Office" or "Reg. U.S. Pat. Office," or some similar notice. When
a trademark is repeatedly used in an ad, some firms put the registration notice
on only the first time it appears, to reduce the possibility of typographic
t <1 > y
bugs.

Putting a Lock on the Trademark

We now meet a paradoxical situation, in which the owner of a successful

trademark suddenly discovers that anyone can use it—all because he failed
to take certain precautionary steps to guard his claim. This problem arises
when the public begins using a trademark to describe a type of product, rather
than just a brand of that type of product. Originally, Thermos was the trade¬
mark owned by the Aladdin Company, which introduced vacuum bottles. In
time, people would ask, "What brands of thermos bottles do you carry?
465
 When the Frigidaire refrigerator came along, We did away with the messy chore of defrosting
the iownanjs wife took a fancy to It ^ arm upto by inventing the Frost-Proof refrigerator.
Today, every Frigidaire refrigerator comes with
the idea. A refri lace his icebox? Never, a Power Capsule that has only three moving parts.
. ... m little lady prevailed.
..... Fewer parts can mean less expense and mconve-
.JHHPi nience
“,'i* *— --
One day even she got her Frigidaire ref rigerator over the life of your refrigerator.
You know, Frigidaire is much more than a During Frigidaire Week, If you decide to buy our
3-door refrigerator. No. FPCi 3-200 VT, you’ll get an
famt^a jn^e that’s been^giving you the automatic icemaker tor free. You only pay
nST for the installation. Offer ends Aug. 31,1972.
V9fVwfwer^hmfto'^glve^u 1f?e conve- F I Before you decide to buy Just any refrigera-
nience of an all-in-one refrigerator-freezer, mm ' -for remember.,.

EM i wmmngera
p * Wlpi

I k1 1 j T * ] :aFri k» Ft
To Protect a Great Name

An advertisement in the retentive stage, working to reenforce the ex¬

clusiveness of the name, and the reputation of the "Frigidaire" re¬
frigerator.
The courts held that "thermos” had become a descriptive word that any 467
1 VCtd€ 7YI CLY k> S
manufacturer of vacuum bottles could use, and was no longer the exclusive Packaging
trademark of the originator. Victrola, cellophane, nylon, escalator, aspirin,
and linoleum, each of which started off as the trademark of one company,
but then it became generic—a word that is public property because their owners
failed to take certain simple steps to put a "lock” on their property.
The steps to "putting a lock” on the ownership of a trademark are
these: (1) Always make sure the trademark word is capitalized, or set it off
in distinctive type. (2) Always follow the trademark with the generic name
of the product, thus: Glad disposable trash bags, Kleenex tissues, Windex
glass cleaner. (3) Don’t speak of it in the plural as, say, three Kleenexes;
rather, say three Kleenex tissues. (4) Don’t use it in a possessive form—not
Kleenex’s new features, but the new features of Kleenex tissues—or as a verb—
not "Kleenex your eyeglasses,” but "Wipe your eyeglasses with Kleenex
tissues.” This is a legal matter but the advertising man’s responsibility to
carry out in the advertisements.

House Marks

Up to now we have been speaking of trademarks that identify specific products.

We now speak of the house mark, the primary mark of a firm that makes a
large and changing variety of products. Here the house or firm mark is usually
used with a secondary mark: du Pont (primary), Lucite, Dacron, Zerone
(secondary); Kellogg’s (primary), Special K, Product 19 (secondary).
Many companies create a design to go with their house mark. This
design alone can appear on everything from a calling card to the sides of a
truck, and on the sides of shipping cases going overseas. It can become an
international identification. But it takes time to establish a design; hence com¬
panies often use their name along with the house mark.
This brings us to a major marketing-policy decision as to how, if at
all, the relationship of all the company’s products should be presented to the House Marks

public. We quote from a report on the subject issued by the 4 A’s:

This is a question of policy. What may be logical for one advertiser

may not be at all suitable for another. The food field offers a good
example of the two philosophies at work.
General Foods aims to have each of its many brands stand on its own
advertising feet. In their early days they were acquiring companies
at the rate of one every three months ... in virtually every case,
each was already established as an advertiser. For many years there
was not family identification in the advertising. Then "A Product of
General Foods” was included in small type, and more recently there
has been an attempt toward family identification through the General
Foods Test Kitchen. . . .
 On the other hand, California Packing has too many products to at¬
tempt to establish brand names for each. Consequently all are carried
under the house mark, Del Monte. They feel that the quality reputa¬
Sears tion established for the overall mark rubs off on each product. They
also point out that this philosophy makes their trademark generically
Kenmore invincible. Who would ask for ''a can of Del Monte”?
Powermate'
Some follow a mixed course. National Biscuit has some 200 cookie
House Marks and cracker packages in its line, a good many of which feature their
A house mark own brands. Yet all carry the Nabisco trademark—usually shown on
combined with a a corner of the package.
trademark of one
In some cases the association of brand and company is deliberately
of the company’s
omitted from advertising, usually because of product competition
products.
within the company’s line itself. This is a common occurrence with
these companies.
This also applies when such associations reflect unpleasantly on the
product or corporate image. A food company making fertilizer, for
instance. The Quaker Oats "Q” trademark is not seen in connection
with Puss-in-Boots cat food.
Or when the association is meaningless. The Gillette mark is not used
in advertising Paper-Mate pens.
Thus we see that a consideration of trademarks goes deep into man¬
agement problems regarding the entire policy of marketing a variety
of products made under the control of one company.1

A Service Mark SERVICE MARKS; CERTIFICATION MARKS

People who render services, as an insurance company, an airline—even

Weight Watchers—can protect their identification mark by registering it in
Washington as a service mark. There is also registration for certification
marks, whereby a firm certifies that a user of his identifying device is doing
so properly. Teflon is a material sold by du Pont to kitchenware makers for
use in lining their pots and pans. Teflon is du Pont’s registered trademark
for its nonstick finish. Teflon II is du Pont’s certification mark for Teflon-
coated cookware that meets du Pont’s standards. Advertisers of such products
may use that mark. The Wool Bureau has a distinctive label design that it
permits all manufacturers of pure-wool products to use. These marks are all
registered as certification marks. They have the same creative requirements as
trademarks—most of all, that they be distinctive.

1 American Association of Advertising Agencies, Trademarks—Orientation for Ad¬

vertising People, pp. 22-23. © 1971. Published by permission.

The Woolmark label on

A Certification Mark this blanket means
that you're getting a
quality-tested product
468 made of the world's
best... pure wool.
PURE WOOL
PACKAGING
We now move on to packaging. The package is the most conspicuous identi¬
fication a product can have, and a major factor in its success.
The average supermarket carries about 8,000 items. It is an ever-
changing panorama, with new products, improved products, and new package
designs constantly appearing on the scene. This is the arena in which consumer
products have to fight—first, to be selected by the store buying committee to
get on the shelf, and second, to be plucked off the shelf by the shopper.
Many people are involved in packaging decisions, and the advertising di¬
rector is one of them.

Basic Requirements

From the consumer’s viewpoint. With all the changes in packaging tak¬
ing place, certain basic requirements never change. The package must pro¬
tect its contents from spoilage and spillage, leakage and evaporation, and
from other forms of deterioration, from the time it leaves the plant until
the time the product is used up. (How long that might be is an important
consideration.) It must fit the shelf of the refrigerator or medicine cabinet
in which that type of product is stored. (Recently, the Vaseline bottle, which
had been round for generations, was redesigned as a rectangular bottle, to
save room in the crowded medicine chest.) Cereal boxes must fit pantry
shelves. If the package is meant to be set on a dressing table, it should not
tip easily, spilling its contents. The package should be comfortable to hold,
and not slip out of a wet hand. (Note how shampoo bottles usually provide
a good grip.) It should be easy to open without breaking a fingernail, and to
reclose for future use. It should be attractive.

Evolution of the
Coca-Cola Bottle

The first Coca-Cola bottle (1900)

had a rubber stopper which
popped when opened—believed
to be the origin of the word
"Pop” for a soft drink.

Courtesy: Modern Packaging Encyclopedia

469
 470 From the store operator’s viewpoint. The store manager has addi¬
The
tional criteria for judging a package. It must be easy to handle, store, and
Advertising
Campaign stack. It should not take up more shelf room than any other product in that
section, as might a pyramid-shaped bottle. Odd shapes are suspect; will they
break easily? Tall packages are suspect; will they keep falling over? The
package should be soil-resistant. Does it have ample and convenient space for
marking? The product should come in the full range of sizes and packaging
common to the field.
For products bought upon inspection, as men’s shirts, the package
needs transparent facing. (Puritan Shirts even included a plastic hanger for
the store’s use.) The package can make the difference in whether a store stocks
the item.
Small items are expected to be mounted on cards under a plastic dome,
called blister cards, to provide ease of handling and to prevent pilferage.
Often these cards are mounted on a large card that can be mounted on a wall,
making profitable use of that space. And at all times, the buyer judges the at¬
tractiveness that a display of that product will add to the store.
There are factors other than packaging that may cause a product to
be selected, but poor packaging may relegate that product to a poor shelf
position. Moving a product from floor level to waist level has increased sales
of a product by as much as 80 percent.2 Good packaging can make that much
difference.

Packaging Thinking

Packaging ideas may be generated by men who perceive a marketing need that
could be filled better by a fresh packaging application, or who see in a new
packaging material or method of design the opportunity to develop a new
packaging idea. We discuss a few of these ideas to reveal the range of market¬
ing possibilities opened by packaging thinking.

Packaging ideas based on changing life-styles. "The sixties saw a

major thrust toward convenience packaging,’’ reports Modern Packaging
Encyclopedia, "when the ever-busier consumer was better able to afford time-
and labor-saving features in packaged goods. The need was answered by an
irresistible trend toward single-trip packaging, opening closures, and unit-of-
use disposable packages.’’ And as for the seventies, it adds, "kitchen-ready,
oven-ready, table-ready quick service, and carry-out are terms that will describe
much of packaging’s largest opportunities.’’ 3

2 Walter P. Margulies, Packaging Power (New York: World Publishing Company,

1970), p. 8.
3 Modern Packaging Encyclopedia (New York: McGraw-Hill, Inc., 1971), p. 11.
 In this connection, the makers of Kraft cheese had this to say about 471
Trademarks
the housewife, in a trade-paper advertisement: Packaging

1. She’s more concerned than ever about food costs.

2. She often doesn’t serve all of a package at one meal.
3. She hates throwing away partially opened packages because they
won’t reseal.

When what’s left in the package won’t keep until the next time she
needs it, she’s lost money. That hurts. Especially nowadays.
That’s why Kraft never stops working to give her packages that con¬
tinue to protect even after they’re opened.
Kraft American singles are just one example of what’s been done to
cut her food waste down. Each slice is individually wrapped. Many
Cracker Barrel Cheeses have their own plastic bag that reseals pro¬
tectively. Kraft Grated Cheeses come with shaker tops. And Kraft
was among the first to use twist-ofi caps on jelly and preserve jars.

Family Circle magazine reported that in 1970, over a million people

under 30 lived by themselves, an increase of 133 percent in eight years.4 Obvi¬
ously, their buying needs differ from those of a family, and that fact is re¬
flected in the way goods are created and packaged for their special needs. And
now packages containing "The Weight Watcher’s Lunch have been added
to the roster of packaged goods.

Packaging ideas that make the product. Here we have the famous
"bug bomb’’ of World War II, which came into civilian use in 1947 for
insecticide sprays. In 1969, 2.4 billion pressurized containers were sold, but
only 100 million, or less than 4 percent, were for insecticides. One and a third
billion pressurized units were used for body sprays, ranging from hair sprays
to sprays for athlete’s foot; 600 million units were for household sprays, such
as cleansers; 225 million were for paint coatings and finishes; 88 million were
for foods; and 1.7 billion for other uses—a tremendous convenience in many
fields, born of a packaging idea.5
The roll-on applicator used for antiperspirants created a new way of
applying a product. Aluminum trays, introduced in 1950, created the TV
dinner, by making it possible to heat and serve meat, vegetables, and other
frozen foods in their containers—all packaging ideas.

Packaging ideas based on sizes and forms. It is always good to sur¬

vey all the products in a field to see if you are not overlooking a size or a good

4 Family Circle, November 1971, p. 6.

5 Modern Packaging Encyclopedia, p. 18.
 472 way of presenting the product. Among the forms to consider are single packs,
The
standard packs in a wide range of sizes, and multipacks, for carrying six or
Werbung
Cam paign more bottles or cans. A package can be made so attractive that the user of the
product will want to keep the container afterward for his own use—for ex¬
ample, a handy, stylized plastic box for small items, or a graceful decorative
plastic bowl for margarine that can be used for serving nuts and popcorn.

Packaging ideas based on new materials and methods. One of the

prolific sources of packaging ideas is the technical improvements in packaging
capability. We have stretchable "shrink” plastics to cover odd-shaped products.
We have high-speed heat-sealed plastic packages holding powdered soup and
drinks, nuts, candies—a feat of moisture control as well as of automation. The
first to use any such development has a competitive advantage.
Tin cans, which are really tin-plated steel, have seen many changes.
They are lighter in weight and have thinner walls than those of some years
ago. Since 1965, a tin-free steel has been used. And new aluminum cans have
been moving in on the field. In 1970, more than 4 billion aluminum con¬
tainers, including all types, were produced. Every time some technical im¬
provement is made in the manufacturing of packages, a new packaging idea
is on its way.

Creating One Package Design for 12,000 Products

The above represents the answer to a challenge to bring a unified look to RCA s
12,000 products, of many sizes and shapes, for homemakers and aerospace scientists,
which would convey RCA consistently and avoid a profusion of symbols. The final
design aligns the new RCA logotype and other information horizontally and ver¬
tically in a modern design. The basic colors were red, black, and white.

Courtesy: Lippincott & Margulies, Inc.

 Packaging ideas based on better closures and reuse features. If there 473
Trademarks
is any one packaging goal on which everyone in the packaging field may be Packaging
said to be working, it is improvement of the closure of packages. Many a cus¬
tomer has been lost because of the difficulty of opening a package. It is a
never-ending quest. Kleenex first offered a package from which you could
pull one tissue at a time. Aluminum-foil rolls and wax paper now come in
boxes with a cutting edge. Some medicinals now come in bottles that are
hard for children to open—the opposite of making a package easy to open,
for a good cause. Even the conventional tube of toothpaste (a form that has
resisted all change) was improved by putting on a wide cap that would not
disappear down the drain. The search for the ideal closure goes on.

-V»
'R* -A* w

These are some of the forces from which new packaging ideas arise.
For an up-to-the-minute exhibit of such ideas, a visit to a supermarket can be
most enlightening.

Designing a New Package

We have now come to the moment of decision in the creation of a new pack¬
age for a product. Package design embraces the entire physical presentation of
the package—its size and shape, the materials of which it is made, the closure,
the outside appearance of its total area, the labeling.

Old and New

This is more than

a change in pack¬
age. It reflects
a basic design
change that had
to be adaptable to
all the packages
on the next two
pages.

Courtesy: Lippincott
& Margulies, Inc.
 Restyling an Entire Line

Though you see close to 100 packages here of different sizes and shapes, you imme¬
diately see a unified harmony of packaging, with each package clearly identified.
Courtesy: Lippincott & Margulies, Inc,

475
 476 Walter P. Margulies, a foremost package designer, stresses the
The
fact that a package is not a thing alone. It is something that must fit into
Advertising
Cam paign the marketing goals of a company; it is a projection of a corporate image.
Often it is related to existing products of a company; if not, it may be the fore¬
runner of a line, and must be designed so that its design is expansible to em¬
brace future products. Package thinking is first of all marketing thinking, and
embraces questions such as:

—How much emphasis should be placed on the brand name? On the

product name?
—Toward what segment of the market should the product’s basic
appeal be aimed?
—In what way will the packaging system best communicate product
appeal?
—Should the graphics try to convey the size, shape, color, in-use ap¬
plications? If so, how?
—In dealing with a food product, is it advisable to include recipes
on the package? Which ones? Should they be changed in accord¬
ance with the seasons?
—Are all package panels being used to their best advantage? Will
they effectively sell the product regardless of the way the pack¬
age is stacked on the supermarket shelf?
—Can the basic design be extended to logically encompass other items
in the manufacturer’s line? Is it flexible enough to permit the
addition of new products at some future date?
—Is there ample space for the inclusion of extra copy to announce
special sales offers?
—What about price marking? Has a specific place been set aside
where the product can be priced easily by the retailer so as not
to mar the total look of the package?
—Is the design flexible enough to permit the addition of new
products?

These are but a mere handful of the multitudinous factors that have to be
taken into consideration by those whose job it is to launch a new package.6

Time for a Change?

We now jump ahead a number of years and perhaps many millions of dollars
in sales for the product we so wisely trademarked and packaged, and whose
merits have earned it many repeat customers. "What’s this?” someone exclaims

6 Reprinted by permission of The World Publishing Company from Packaging

Power by Walter P. Margulies. Copyright © by Walter P. Margulies.
some morning. "You want to make changes in our good-luck package? There 477
Trademarks
is no clock of package life that says whether or when you might want to con¬ Packaging
sider a change. But there are certain telltale market indexes that say it may
be time to review the situation. Among them Margulies cites the following:

1. Innovation in physical packaging

2. Exploiting a reformulated product based on a meaningful formula
change
3. The force of competitive action
4. Repositioning your product
General Foods learned that the image of the decaffeinated
Sanka brand was that of a castrated bean. The coffee-loving
public avoided it. To reposition Sanka, the yellow label, which,
according to research, suggested weakness, was replaced with
a dominantly brown label, "very strong. And the statement
"97 percent caffein-free’’ was given a less significant spot on
the label
5. When effective ads force a shift in tactics
Only when a theme has established itself as distinctive and
long-lived
6. When changing consumer attitudes force a shift in marketing
tactics
7. Upgraded consumer taste in graphic design
8. Changing retail selling techniques
9. When unrecognized home use determines a new marketing posture

As against these reasons for considering a change, Margulies offers

the following reasons for not changing:

1. Don’t change because of a new brand manager’s desire to innovate.

2. Don’t change to imitate your competition.
3. Don’t change for physical packaging innovation only.
4. Don’t change for design values alone.
5. Don’t change when product identification is strong.
6. Don’t change if it may hurt the branding.
7. Don’t change if it will weaken the product’s authenticity.
8. Don’t change if it will critically raise the product’s price.

"A decision to stay with the status quo,’’ he adds, is as important as the
one to innovate.’’7
However, F. Kent Mitchel, vice-president and director of marketing

7 Ibid., pp. 62-67.

 478 services of General Foods, had this to say. "The company is constantly testing
The
new packaging for products which could turn an old product into a new one
Werbung
Campaign at much less cost than starting from scratch.” 8
When a package is to be changed, it is often done on a gradual basis,
changing only one element at a time, so that old customers will not suddenly
feel that this is no longer the product they have known and trusted.
Package design has become so important that a specialized field of
package designers has developed.

Testing the Design

A number of sophisticated devices have been developed to test various aspects

of package design. The polariscope indicates which of several designs is most
legible under the poorest illumination. An angle meter tests which design is
most legible when approached from an angle, which is the way most packages
are first seen when one is walking through a shopping aisle. The tachistoscope
is a machine that tests which design, or part of a design, is most legible in a
quick moment of viewing.
Packages are also subjected to consumer tests, to see how well open-

8 Advertising Age, November 8, 1971, p. 1.

A Package Test

When it was planned to modernize the Droste Cocoa package, the two new pack¬
ages on the right were tested against the two old packages on the left. Interestingly
enough, the research showed that people preferred the old packages.

Courtesy: Royal Droste Factories

Research: Richard Manville Research Inc.
ing devices work, and to get consumer reaction to the package as a whole. 479
Trademarks
Raphael cites one of the consumer tests for the easy-opening tab on beer Packaging
cans. It was found that women did not have the strength in their fingers to
open the first version, and the tab was altered.9 In order to improve the image
of a brand of margarine, it was decided to wrap the sticks in parchment, the
way butter is usually wrapped, and it is generally accepted that comparison
with butter is the criterion by which the quality of margarine is judged. Be¬
fore actual production of the parchment-wrapped stick, an in-home com¬
parison test was made between sticks of margarine wrapped in foil and in
parchment. The test revealed there was an overwhelming preference for the
margarine wrapped in foil! As a result, the manufacturer cancelled an ex¬
pensive order for parchment wrapping, which, if used, would have hurt sales.
Proposed new packages are usually tested not only against alternate
designs, but with the packages of competitive products.

Legal Aspects of Packaging

There are federal and state laws regarding packaging and labeling which make
it mandatory, for various products, to include certain information on the
package regarding size and content. The Fair Packaging and Labeling Act of
1966 says:

Informed consumers are essential to the fair and efficient functioning

of a free economy. Packages and their labels should enable consumers
to obtain accurate information as to the quality of the contents and
should facilitate value comparisons. Therefore it is hereby declared
to be the policy of the Congress to assist consumers and manufacturers
in reaching these goals in the marketing of goods.

This is a most far-reaching law affecting packaging and labeling. The Food
and Drug Administration is responsible for enforcing the law as it affects
foods, drugs, cosmetics, and other devices. The Federal Trade Commission
has jurisdiction over "other consumer commodities.
In 1970 the FDA regulations placed on the manufacturer the burden
of submitting data on the safety of food, including the packaging material
with which it may come into contact. In about 25,000 words the regulations
spell out the exact labeling requirements, including the descriptive words that
may be used, and how quantities and volume must be stated; also the exact
size and placing of type, and the background colors.
The Federal Trade Commission has rules about packages designed

9 Harold J. Raphael, Packaging: A Scientific Marketing Tool (East Lansing, Mich.:

Michigan State University Book Store, 1969), p- 165.
 480 to prevent misrepresentation. For example, no package may say "Economy
The
Size" or "Jumbo Size" unless it has available one other smaller size. In addi¬
Werbung
Campaign tion the FTC has rules regarding the labeling statements of a variety of prod¬
ucts; also the enforcement of the Health Warning on cigarette packages. The
Alcohol Tax Unit of the Treasury Department has its mandatory labeling re¬
quirements on alcoholic beverages.
The chief contribution the advertising man can make regarding the
mandatory requirements on a package is to make certain the package and
label have been approved by an attorney.

The Waste-Disposal Problem

I was astonished to discover that as recently as 1965, when the preceding edi¬
tion of this book went to press, the subject of pollution did not loom into
sufficient importance to be mentioned in the text. Today pollution is the chief
subject of concern discussed at all the meetings of the industry. It is a major
topic at women’s clubs. "It will come as a shock and a surprise to most pack¬
agers and suppliers," said a report by Modern Packaging, which had made a
study of 500 consumers in 38 states, "that the general public does not share
their belief in the utility and necessity of packaging. In fact, the public blames
packaging for an enormous—and unjustified—share of today’s waste dis¬
posal problem. . . . Most people believe that packaging accounts for 50 per¬
cent or more of their solid wastes. (The true figure is about 15 percent.) ’’ 10
The industry is deeply involved in problems of recycling and other
waste-disposal techniques. It is particularly concerned about those plastics that
are not biodegradable (that is, that will not decompose and join the soil).
What further restraints on packaging will the law invoke? What disposal
problem might a proposed new container represent? Will people change their
attitude towards packaging? If so, how? And how will it affect their buying
habits? These are questions that remain to be answered.

Review Questions

1. Define a trademark. What is its 3. What are the important legal re¬
purpose ? quirements to keep in mind in creat¬
ing a trademark?
2. Give a brief definition or descrip¬
tion of the following: 4. At times you will see the same trade¬
a. trade name mark used for two different prod¬
b. coined word ucts (Esquire Shoe Polish, Esquire
c. secondary meaning Hosiery). How is this possible?
d. house mark

10 Modern Packaging, March 1971, pp. 38-41.

 9. In your own words, discuss how 481
5. What are the chief criteria from the Trademarks
advertising viewpoint for creating packaging is related to marketing
Packaging
or selecting a trademark? thinking.

6. Explain what is meant by the regis¬ 10. Discuss some of the conditions
tration of trademarks. Can you use favoring and not favoring a change
a trademark which has not been in a successful package.
registered ? 11. Describe some of the approaches
7. What are the basic requirements of used in testing packages.
a package from the consumer’s view¬ 12. In what ways do you think eco¬
point? From the retailer’s? logical concerns affect packaging?
8. Can you cite several examples where 13. Find three examples of current ad¬
packaging ideas "made” the prod¬ vertising where the emphasis is on
uct? the package.

Reading Suggestions

American Association of Advertising Levitt, Theodore, "Branding on Trial,”

Agencies, T rad e marks—Orientation Harvard Business Review, March-
for Advertising People. New York: April 1966, pp. 21—38.
1971. Margulies, Walter P., Packaging Power.
Barlow, C. Wayne, Corporate Packaging New York: World Book Company,
Management. New York: American 1970.
Management Association, Inc., 1969- Marquette, Arthur F,, Brands, Trade¬
Busmess Management, "Packaging: Why marks and Good Will. New York:
You Must Plan for the Future,” April McGraw-Hill Book Company, 1967.
1967, pp. 50-60. Modern Packaging Encyclopedia. New
Business Week, "The Power of Proper York: McGraw-Hill, Inc., annual.
Packaging,” February 20, 1965. Ex¬ Raphael, Harold J., Packaging: A Sci¬
cerpted in Kleppner and Settel, Ex¬ entific Marketing Tool. East Lansing,
ploring Advertising, p. 254. Mich.: Michigan State University
Diamond, Sidney J., "Protect Your Book Store, 1969-
Trademark by Proper Usage,” in Ex¬ Sales Management, "The Name is the
ploring Advertising, ed. by Kleppner Game,” May 1, 1969, pp- 55-58.
and Settel. Englewood Cliffs, N.J.: Sarnoff, Robert W., "Anatomy of a
Prentice-Hall, Inc., 1970. New Trademark,” Saturday Review,
Gardner, David M., "The Package, April 13, 1968. Also in Kleppner
Legislation, and the Shopper,” Busi¬ and Settel, Exploring Advertising, p.
ness Horizons, October 1968, pp. 248.
53-58.
Guss, Leonard M., Packaging Is Market¬
ing. New York: American Manage¬
ment Association, Inc., 1967.
21
The Dealer Program

A salesman for A new spray oven cleaner walks into a store.

"Good morning,” he says. "I have a new spray oven cleaner I would
like to show you.”
"Have enough oven cleaners.”
"But this one is different—it does a much better job than anything
now on the market.”
"Never heard of it.”
"Soon this advertising campaign will appear, and when it does, you
will have many calls for this cleaner—it’s such a fine product.”
"Well, maybe so. Just as soon as I get any calls for it, I’ll call you.”
What is the salesman supposed to say?

Here is another problem: The salesman of a well-known product is

called in by the buyer of a chain carrying his goods.
"We have just completed an analysis of all items in your category,
and we are planning to drop those making the poorest showing; we just
haven’t got room for them all. You are on the list to be dropped unless you do
something to change the sales picture quickly. Have you any plans?”

In both instances, the salesman is faced with the problem of presenting

a program through which the dealer can expect fast sales action. Creating and
producing such programs, as a part of the basic sales presentation, is standard
operating procedure for any advertiser selling through distributors. These
projects are variously known as promotions, dealer programs, merchandising
plans, and sales-promotion plans.

Forms of Dealer Programs

The most frequent forms of dealer programs are:

—Point-of-purchase advertising —Coupons and sampling
—Premiums —Deals
—Contests —Cooperative advertising

482
 Courtesy: News Front, Management News Magazine

Displaying Merchandise Is Not a New Idea

These are often used in different combinations with each other. How important
they can be in a company’s sales operation is revealed in a report by the Nestle
Company, producers of a long line of food products, that in 1970 spent $23
million in major media, and an additional $10 million in promotion.1

POINT-OF-PURCHASE ADVERTISING

The effective use of point-of-purchase advertising is based on an

understanding of:

1. The shopping habits of the consumer

2. The needs of the store manager

1Advertising Age, November 1, 1971, p. 70.

483
 484 3. Forms of displays
The
Advertising 4. The display idea
Campaign
5. Getting the display used

The Shopping Habits of the Consumer

Over a number of years, du Pont has made a most extensive survey

of the buying habits of the consumer. Their latest report, based on 7,147
shoppers, 345 supermarkets, and 95,262 purchases, showed that 49-9 percent
of all purchases made were of items that the shopper did not have in mind
upon entering the store. Unplanned purchases are often called impulse pur¬
chases (which the writer regards as an oversimplification of the mental
process whereby a person becomes ready to make what may seem a totally
spontaneous decision). Incidentally, the average shopper visits the super¬
market two or three times a week, and spends 26 minutes shopping.2
In another study of consumer reaction to point-of-purchase material
in seven types of retail outlets, 60 percent reported the material was an aid
in shopping; in supermarkets the figure was 73 percent.3

The Needs of the Store Manager

The Progressive Grocer conducted a test of the effects of 734 displays

over an eight-week period, based on sales of 360 grocery items in five super-

2 1th du Pont Consumer Buying Habits Study, copyright 1965 by E. I. du Pont De

Nemours & Company, Inc.
3 "Consumer Reaction to Point of Purchase Advertising in Seven Major Types of
Retail Outlets,” Point of Purchase Advertising Institute, 1971.

The formula below determines

net profit space yield of item x

Handling cost per case \

(T (suggested by McKinsey-General Foods 1963 study)
$ .42

Cases sold per average week 2

3 Total product handling costs $ .84

The Arithmetic of Shelf Space
4 Exposure space used 12" x 18" 1.5 sq. ft.
Occupancy cost @ $.10 per sq. ft.
5 (based on Supreme’s overhead)
$ .15

6 Weekly dollar sales of item ($6 per cs x 2) $12.00

T Gross profit dollars @ 20% $ 2.40

Courtesy:
Total “net” profit yield
8 (Gross dollars minus occupancy and handling costs)
$ 1.41 Chain Store Age, Supermarkets Magazines

Profit yield per square exposure foot $ .94

lr> J
 COMPARISON OF SALES
Normal Sales vs. Use of Displays

Display Normal Display Normal

Unit Unit % $ $ %
Sales Increase Sales Sales Increase
Verkauf

4,904 879 458% $ 4,303 $ 891 383%

Coffee, Tea, Cocoa
13,112 2,226 489 4,677 781 494
Crackers & Cookies
5,466 301 1,716 576 41 1,296
Dessert§
3,761 288 1,206 1,219 173 603
Jams, Jellies, Spreads
4,937 1,064 364 1,426 345 314
Paper Products
16,026 944 1,598 1,914 177 979
Prepared Foods

Salad Dressing,
1,919 379 406 866 168 415
Mayonnaise

ALL DISPLAYS
(WITHOUT PRICE
57,587 10,052 473% $18,832 $3,581 425%
CHANGES)

Source: Progressive Grocer, January 1960, pp. 4-7. This is partial list.

markets. The report shows that the sales of products on which there was no
variable except the display increased by 425 percent in dollar income during
that period.4 No wonder the manufacturer keeps hearing a voice from his
sales department saying, "What we need are some good displays!

But the store manager constantly hears a louder voice, saying Beat
last year!" Displays are only one element of the profit-making structure. In
determining which items he will promote with point-of-purchase advertising,
the retailer uses the following criteria.

—The product returns a good dollar volume.

—The display has an exciting promotional theme (often a projection
of one used in the mass media).
—The display is well adapted for the store not too large nor too
small.
—The promotion promises to sell related items.
—The promoted item carries a good markup.
_The promotion fits the retailer’s own schedule of promotions.5

4 Progressive Grocer, January I960, pp. 4-7.

5 From "The Value of In-store Support,” The Point of Purchase Advertising Insti¬
tute, Inc., 1971.

483
The anatomy of a storewide
During the run of the merchandising test, Del Monte of¬ the same retail and manufacturer advertising and promo¬
fered its annual storewide promotion to the trade, an tion. However, pairs of stores were assigned varying levels
effort that included a wealth of in-store display material of in-store participation to test the selling effect of maxi¬
and a major consumer promotional effort. mum use versus minimum use of point-of-purchase and
Tables show how the featured Del Monte products decorative storewide material.
reacted to store wide activity in markets that made full On the average, featured products sold 153% more
use of the program compared to those that did not parti-, units in stores that made full use of the manufacturer-
cipate. Each type of product featured was analyzed by supplied materials. The conclusion is that while outside
brand so that, for the first time, the net selling produc¬ promotion can give promise of increased sales, the poten¬
tivity of this promotional activity could be established. tial can die at the store’s front door if there is no follow-
All stores in the test panel enjoyed the benefits of through inside.

Fruit cocktail Catsup

Green peas Tuna

Courtesy: Grocery Mfr. Magazine, May 1971

Report of Storewide Point-of-Purchase Test
 A survey among operators of key stores in seven different types of 487 ^
retail outlets asked how point-of-purchase material can be made more ac- Program

ceptable. The answers indicated a preference for displays that are simple and
easy to use, that are not too big for the location for which they are planned,
that have a novel idea and good artwork, and that arrive two or three weeks
ahead of the time at which they are to be used.6

Aspects of in-store support. Grocery Mfr. magazine joined in mak¬

ing controlled merchandising tests with a panel of A&P stores, "to put the
calipers on in-store techniques—and directly measure their value.” We quote
some of their findings:

6 "The Combination for Display Utilization at the Retail Level,” a report by Louis
Harris and Associates, Inc. (Point of Purchase Advertising Institute, Inc.), 1963.

Floor Stand Display

This floor-stand display became the May-

belline Eye Fashion Center, designed to
provide 127 product facings in minimum
space, for easy customer selections.

Ji!
1|. % ** Hi!

11
1 III *
11 1
* Off
wm

Courtesy: POPAI
 488 In general, the tests demonstrated the selling power of the heavily
The
traveled front-of-store position, with second place going to first-aisle
Advertising
Campaign and back-aisle locations.
Highly promoted advertised special-priced products and those with
a strong consumer franchise [i.e., consumer following] fare well even
if displayed at locations with less than optimum shopping traffic.
However, impulse products and "low profile” items need to be placed
at the heavily traveled locations to make displays pay off.
When a special display of the merchandise is made (as in a basket)
and if it is featured in retail ads or is special-priced, the chances are
that the shelf sales will be relatively unaffected and might even inch
up during the display period. However, in every case for products
without any advertising or price promotion, shelf movement declined
during the display period (though the total sales for the period are

Changeable Counter
Merchandising Stand

This is a changeable display for various

types of counters. Interchangeable trays
fit in position on the display, which can
be made taller or shorter.

Courtesy: POPAI
 much higher). For an unadvertised canned drink item, normal 489
The Dealer
shelf movement dropped from a normal rate of 27 to 19 during the Program
first week of the display and 23 for the second week; meanwhile the
display sold 156 units in the two-week period.
Unless it is a fast-moving seasonal item, the effective life of a display
is brief; beyond the second week it is counterproductive in valuable
space.7

The information above applies particularly to grocery chains and

supermarkets. In the case of hardware stores, displays are usually smaller and
stay up longer. In shopping centers where hard goods are sold, the displays
are usually more descriptive of the products, and stay up longer.

Forms of Displays

Displays are designed to take advantage of all dimensions and areas

of an establishment, and include outside signs, window signs, floor displays
(including jumble displays}, counter displays, shelf displays (shelf ex
tenders), wall displays, overhead signs, and cards holding merchandise, for
check-out counters.

Permanent signs. These include the signs in front of a gas station,

or the clock in a soda parlor, or a glass sign of an expensive watch in a
jeweler’s window. Displays can also be illuminated. The illuminated ones, of
course, get more attention, and are reserved for good spots in good outlets (as
for a back bar). Illuminated displays are usually designed to be effective even
when not plugged in.

Motion displays. In a succession of tests, displays with motion were

favored by 70 percent of the dealers, were given 88 percent of the prime in¬
store locations (compared with 47 percent for nonmotion displays), and pro¬
duced an 83 percent average gain above normal shelf sales.8

Permanent merchandise trays, racks, and cases. The dealer welcomes

displays occupying little counter or floor space, and that hold or dispense
merchandise and provide a self-service feature. This may be an open-face
stand from which merchandise such as paintbrushes, phonograph records,
furniture polish, floor wax, and pocket-size books can be picked right out.
For small, costly items such as watchbands, displays may be designed so that
they show the goods to the customer, but are accessible only from the dealer s
side of the counter, in a pilferproof arrangement.

1 The Value of In-store Support, published by Grocery Mfr. magazine, 1971.

8 Report of Point-of-Purchase Advertising Institute, Inc., 1965.
 490 The Display Idea
The
Advertising _ . .
Campaign The heart of the display, however, is its selling idea, designed to
generate purchases. Here, the creative man can think in terms of three di¬
mensions, and, subject only to outer-size limitations and need for construction
simplicity and cost, he has the world of shapes and materials with which to
work. Among the directions on which he can embark are ideas such as these:

The product itself. The most important display piece in a store is

the product itself, and any idea that focuses attention on it is helpful. The
solution may be a large stack of the packaged product on the floor, with a
sign stating an advantage and the price. Or the merchandise can be tumbled
in a large box from which the shopper is invited to pick one (a relic of our
childhood grab-bag days, no doubt), likewise with a sign stating an ad¬
vantage.

The current advertising theme. Point-of-purchase advertising is a

projection of the current advertising theme, whatever it may be. The challenge
is to reduce it to its simplest elements, then dramatize it in three dimensions.

Tie-in with other products. This form of display idea suggests the
promotion of other products, related to the one advertised, that the store also
sells. A display of beer suggested pretzels and potato chips. Kellogg’s Corn
Flakes displays featured appetizing dishes of Kellogg’s with berries and other
fruit on sale in the store.

Storewide promotion. Some displays are based on a storewide pro¬

motion, as Back-to-School, Cook-Out, Spring Cleaning, Fall Festival, and
Vacation Needs. Here, the manufacturer provides thematic point-of-purchase
material that can apply to all departments in the store, with special emphasis,
of course, on his own products.

Tie-in with national advertising. For the smaller independent stores,

window displays based on the national advertising theme may be particularly
helpful in reminding the passerby that here is the place to get the product
he saw advertised.

Demonstrating the product. Often the display can invite the shopper
to try out features of the product for himself, by pressing a button, looking
through an opening, or turning a knob. This is especially good for new types
of products.
 get rich on
peanuts
...and pretzels
...and potato chips
...and Holland House

Get faster returns on your inventory invest¬

ment by using a Holland House display to
sell related high profit items. It’s a terrific
way to remind your Holland House cus¬
tomer to stock up on her collateral enter¬
taining needs.
So this year, put it all together with
Holland House and find yourself getting
rich on peanuts. And other related items
like snacks, dips, chips, anchovies,
cheeses, straws, pretzels, popcorn. And
maybe even caviar.

NUTS

Showing How Display Can Help Other Sales

This trade paper advertisement for Holland House Cocktails shows dealers
how by using this display they can also increase the sale of pretzels and
potato chips. Purpose: to get them to use the display.
 492 Getting Displays Used
The . .
Advertising There is great waste in the issuance of displays; the problem is in
Campaign getting them used. There must be a plan, and the retailer should know about
it in advance. The chief burden for getting the cooperation of the store
manager in using the manufacturer’s displays is upon the manufacturer’s sales¬
man who calls upon that store or chain. Many salesmen will also go to extra
effort to make sure that the display is put to good use and stays up as long
as possible. Many displays are not used in department stores and chains be¬
cause they are not in accordance with promotion and/or merchandising policy.
In many cases all that is needed is tailor-making the displays somewhat to fit
the store’s requirements.

Having Displays Made

There are firms that specialize in creating and manufacturing different
types of displays—made of cardboard, metal, wood, plastic, or glass. Some
will combine these facilities, or subcontract parts of the work. These firms
will usually submit their ideas in design and dummy form, along with a total
production estimate, on speculation. There are many firms that serve as con¬
sultants and brokers in the sale of displays, supplying the idea, and if they
get the order, having it produced through various manufacturers. Either of
these procedures always requires a clear understanding in advance about the
conditions for doing business. For example, take the case of a firm submitting
an idea that is desired, but whose production cost is too high. Perhaps ar¬
rangements can be made to give them the order for the first run at their price,
and open the field to competition for the reruns. But whatever the deal, it must
be made before any work is done.
Most large firms that have a continuing stream of display requirements
have their own creative display departments, which create the idea. The manu¬
facturing is then processed through the advertiser’s purchasing department.

PREMIUMS

A premium, as the term is used in advertising, is an item offered as an

inducement to buy the advertised product. Such an item offered without extra
charge is called a free giveaway. Or it may be offered upon proof of purchase
and payment of a charge; this is called a self-liquidating premium, or self-
liquidator.
A free giveaway premium may be handed to the person directly,
when he makes his purchase; for example, a gas-station attendant might hand
out glasses to people who buy a set amount of gas. Or the premium might be
packed in the packages that are purchased, as might a plastic measuring cup
 Stainless spoon offer from'TOTAL'.

A set of six beautiful iced-drink (or whatever!) spoons

in Oneida Community stainless, as featured in the BettyOocker Coupon Catalog.
r
i General Mills, lnc„ P.O. Bax 72, Minneapolis, Minn, 55460
Summer's here! And whether you serve your guests
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Tote! enclosed:
Any set of these solid stainless spoons can
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So pick up a box of Total today. Then send for .State.

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Featuring a Self-liquidating Premium

 494 packed in a can of coffee. This is called an in-pack premium. Sometimes this
The
enclosure is a coupon that can be redeemed. The premium might be affixed to
Werbung
Campaign the outside, as might a towel that goes with a box of detergent; this is called
an on-pack premium. Or a double package can be planned, to hold both the
advertised product and the premium.
Self-liquidating premiums usually require a proof of purchase to be
mailed in, along with money to cover the set charge.

The Use of Premiums

The purpose of a premium is to get an immediate and demonstrable

increase in sales. It can be used to introduce new products. It can be used in a
local territory where strong competitive pressure has developed; it can be
used on a national basis. It can be used to increase the unit of sale, or to get
traffic into a showroom. It can be used to offset seasonal slumps and to attract
heavy users.
To introduce Fresca, the Coca-Cola Company offered a free phono¬
graph record with proof of purchase of two cartons of Fresca, and distributed
500,000 records. To build traffic for all its dealers, the Armstrong Cork Com¬
pany offered for $1 an album of records of all the songs in its TV showing of
Brigadoon, to all people who would go to a dealer and pick up an order blank;
over 750,000 people visited dealers. General Mills made a national broadcast
offering a comic book for proof of purchase of two boxes of Wheaties, and
had over 7,200,000 requests for their comic book.
Premiums are not indicated, however, for a product that is bought
only occasionally, like tires, or for products bought only when a special need
arises, like a cough preparation. Premiums are not helpful when the sales of
a company have been steadily going down. The cause for such a decline is far
more critical than can be offset by premiums.
The types of premiums used most in 1971 were games, toys, sporting
goods, general kitchenwares, and appliances. The biggest users of premiums
were manufacturers of health and beauty aids, gasoline, meat products, soft
drinks, and appliances.9

What Makes a Good Premium?

The more of the following qualities a premium has, the better:

—It should have glamor or be useful.

—It should be something of which the consumer seldom has too
many.

9 Incentive Marketing, August 1971.

 —It should not be on sale elsewhere. 495
The Dealer
—It should represent a real value in quality and price. Program

—It should not compete with another product regularly in the store,
unless it is a part of the advertiser’s family of products.
—It should be simple to handle and to mail.

The trend in premiums is to offer products of better quality and higher price.
A symposium of the Premium Advertising Association made the
following suggestions:

1. Give complete specifications about your premium in the advertising.

Give sizes, colors, and any other details that will help visualize
what you are offering.
2. Deliver premiums as quickly as possible; this applies especially to
children’s premiums.
3. If you charge anything at all for your premium, be sure that your
customer will feel that his money was well spent.
4. Be sure that premiums offered to children are such as have the
approval of the parents.
5. If it is necessary that a coupon be filled out in order to get a pre¬
mium, provide room enough for writing in an average name and
address.

Often different premium offers will be tested in different markets to deter¬

mine which holds the most promise.
But premiums have their problems, too. An in-pack premium in a
package of food must meet the requirements of the Food and Drug Adminis¬
tration, to make sure it does not impair the foodstuff. In-pack coupons must
meet the regulations of the Federal Trade Commission. On-pack premiums
are not favored by the trade on account of pilferage. The physical work of
handling premium mail and fulfillment is usually done by firms specializing
in this work.
There is one guide that should be followed in advertising premiums.
The advertising must so clearly and correctly describe and picture the premi¬
ums, and must state the terms so clearly, that the person receiving it will not
be disappointed. This applies to prompt delivery, too. If a child, especially,
has been disappointed, the whole family feels his sadness.

Legal aspects. A variety of federal and state laws may bear upon a
premium offer. Everything should be cleared by an attorney first. The biggest
legal problem in the advertising of premiums is the use of the word FREE.
A free offer is one to which no cost is attached. If a product is given free with
the purchase of another one, the price of the other product must be its regular
 A Study in Premium Offers

Advertiser Premium Terms

Beech Nut (baby food) Terry-cloth bib 25^ and 3 labels

General Foods Vinyl tablecloth 75^ and 2 labels

(Gaines Gravy Train)

Gillette (Right Guard) Traveler’s bag $6.95 and label

Kraft Dinner line items Teflon-coated cook¬ $25 and 6 labels

ware (12 pieces)

Lever Bros. (Rinso) Hosiery $1 and 2 labels

Nestle (chocolates) Candy dish $2 and label

Sunmaid Raisin Growers Fielder’s glove $5.50 and seal

(raisins)

Shulton (Old Spice 3 literary classics $2.95 and proof of

toiletries) purchase

3M Company (freezer tape) Knife for frozen food $1 and label

Planters (peanuts) Booklet—Appliance 25^ and label

Cooking for All
Seasons

Source: Incentive Marketing, 1971 issues.

price; it may not be increased to absorb some of the cost of the free item. All
conditions of purchase to obtain the free item must be stated conspicuously in
conjunction with the word FREE at the outset. A free offer is not to be
allowed in a trade area for more than six months in a twelve-month period,
according to F.T.C. regulations.

Fulfillment firms. The physical work of handling premiums, in¬

cluding opening the mail, verifying payment, packaging, addressing, and mail¬
ing, is often handled on a fee basis by firms who specialize in "premium
fulfillment." They also handle contest responses and prizes.

Premiums as Trade Incentives

Premiums are also used as incentives for salesmen to reach certain

sales goals, and to dealers for ordering certain quotas of goods that they are
then to support with special displays and featuring. Giving premiums to
salesmen and the trade falls within the province of the sales department, but
any advertising man sitting in the council that is establishing an entire sales
and advertising promotion should be aware of them. They are referred to as
the incentive end of the premium business.
 CONTESTS 497
The Dealer
Program
Somewhere in every discussion of a consumer promotional plan, the
idea of a contest is sure to come up. A Coca-Cola "Tour the World’’ contest
brought in 9,250,000 entries. Not too many firms can embark on a contest
of such magnitude, but the fact that the public responds in such numbers
gives contests a perennial place for consideration in major advertising plans.
In a highly competitive, highly advertised field, a contest may be a
welcome change of pace from head-on competitive claims. It brings fresh
interest in the product to its present customers. It reaches out for new ones. It
may be run locally to meet competition; it may serve as a test before expanding
the program regionally or nationally. It may generate new interest among
dealers by bringing traffic into the store.

A Contest
\\or<cesltei•sitiiire
Involving Use of Product
a wininei t(inliiidit
Then enter your recipe in Lea & Perrins contest.
IO First Prizes- one for 200Honorable
each of these categories. Mentions:
A Certificate of Merit from Lea &
1. SEAFOOD 5. POULTRY
Perrins acknowledging you as a mem¬
2. MEATS 6. SOUPS
ber of the “Be Original” Culinary Club.
(LAMB, VEAL,j 7. SALADS
[BEEF,PORKJ 8.VEGETABLES Everybody Wins:The Lea &
Perrins “Exciting Ideas” Cookbook.
3. EGGS ft APPETIZERS
4. CHEESE 10. “YOU NAME IT”
CONTEST RULES:
1. Entries must be original recipes using Lea &
Let yourself go in the kitchen with Perrins Worcestershire Sauce, and will be judged
Lea & Perrins Worcestershire Sauce. on the basis of originality, appeal, consumer use¬
It can make almost any recipe into a fulness and accuracy.
winner. Have fun experimenting with 2. Each recipe must be written legibly in ink, or
your own favorite recipes and you’ll typed, on one piece of paper.
see. You can bring out the flavor of 3. Each recipe must (a) bear name and address
all kinds of foods, from chicken to of contestant, (b) indicate category title and num¬
ber in which it is competing, (c) list ingredients
carrots, from salmon to squash. And and exact measurements in order of use, and (d)
add a subtle difference to every dish. give complete directions for combining and com¬
Try it. Then send us your own pleting, including pan size, time and temperature
for cooking.
original ways to use the original
Worcestershire Sauce. There are 10 4. Multiple entries are encouraged in any or all
categories. Entries must be postmarked by July
First Prizes —one for each of the ten 31, 1972.
categories. And you can enter any or
5. Employees of Lea & Perrins, Inc., Creative
all, with as many recipes as you like. Marketing Management, Creative Food Service,
There are 50 runner-up prizes, too. Inc., their respective advertising agencies and
their families may not participate. All entries will
And everybody who enters wins a free become the property of Lea & Perrins and may
copy of the Lea & Perrins “Exciting be altered or advertised without further per¬
Ideas” Cookbook: 77 things to Wor¬ mission; none will be returned.

cestershire—and every one a winner. 6. Judging will be conducted by Creative Food

Service, Inc., an independent judging firm.
Decision of the judges is final. In case of dupli¬
cate winners, duplicate prizes will be awarded.
PRIZES 7. Liability for Federal, state and other taxes is the
First Prize in each sole responsibility of winners. This contest is sub¬
ject to all Federal, state and local regulations.
category:
A Minutemaster Microwave oven by 8. Winners will be announced and noti¬
fied by mail on or about December 1,
Litton Industries. Cuts cooking time 1972, and agree to participate in pub¬
by 75%. Lightweight, portable, cooks licity, advertising and other materials
related to the contest, at the sole dis¬
clean and cool. cretion of Lea & Perrins, Inc.
Five Runner-Up Prizes
in each category:
Ronson’s Superflexible “Quintis- MAIL ENTRIES TO: ^
serie”—a five-in-one unit. Broils, LEA & PERRINS
“ORIGINAL RECIPE” CONTEST
grills, fries, griddles and roasts. Holds P.O. BOX 560
roasts or turkeys up to 25 pounds. MONTCLAIR, N.J. 07042
 COUPOH TO P0U8 STORE

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Each offers cash inducement to buy product.
 As in the case of premiums, contests are of no help if the sales of a 499
The Dealer
company have steadily been declining. Something more basic needs correction. Program

Forms of Contests

There are vogues in forms of contests. In 1950, the fourth edition of

this book reported, "Most contests are for trademarks and slogans." In 1966,
the fifth edition reported that 65 percent of all contests were for sweepstakes,
and 23 percent for completion questions, such as "Why I like . . In 1971,
Incentive Marketing magazine reported, "84 percent of all contests are for
sweepstakes.” Completion questions were not even mentioned.
A contest may provide a theme for the whole advertising and sales-
promotion program, including the dealer promotion. It must be planned well
in advance.

' ff
Legal Aspects

Contests are subject to federal and state laws.

The Federal Trade Commission is directly interested, especially in
the way winners are selected. The U.S. Postal Service prohibits the use of mail
for any lottery, which is defined as "a plan for distribution of things of value
by lot or by chance among people who have given consideration.” The key
words here are "have given consideration”; therefore there must be no pay¬
ment of any kind required to get into a sweepstakes, where the winners are
drawn by lot. (If, however, the contest requires some manifestation of talent,
as writing your ideas about something, this is not considered a lottery. Such
contests, however, are harder and slower and more expensive to judge.)
Among other details that are important are the statement of the ex¬
piration date, notice of how the winners are to be notified, and a clause, Void
where prohibited by law,” to meet the problem of state laws.
The first man to call to your side in discussing contests is your lawyer.

Handling Contest Replies

There are firms that specialize in handling the physical details of

contests (called contest fulfilment), including receiving entries, selecting and
notifying winners, and handling other details incident to the contest.

SAMPLING

A sample of a product is one of the best ways of convincing a person

of its merits. Sampling is used most frequently for new low-priced products
with a fast repeat sale, like cosmetics, toothpaste, and foods. Sampling usually
coincides with mass-media advertising taking place in an area at the same time.
 500 Sampling is usually done by door-to-door delivery by distributing firms
The
in various markets geared to handle such assignments, or through the mail
Werbung
Campaign (the expensive way).
A trade practice has developed whereby an entrepreneur assembles
minipacks of different products, puts them up in one wrapping, and sells them
through the stores. To the consumer, it is good value; to the store, it is a full
markup; to the advertiser, it is an economical way of getting distribution for
his sample. Again, the value of the contents lies in the reputation the products
have built through their usage and advertising.
A question often arises about taking money away from the advertis¬
ing fund to put it into sampling. We quote this excerpt from the report of an
anonymous "Brand Manager" writing of his experience in Advertising Age:

Seems as though our sampling program was going great guns for a
hair preparation I then worked on. As we expanded across the coun¬
try, we were capturing a 20% to 25% share of market within four to
six months of introduction. . . .
About halfway across the country, we learned that a competitor was
coming into the marketplace shortly, and so we decided to expand
more rapidly than we originally planned. Unfortunately, advertising
and promotion dollars were not easy to come by. . . .
So I recommended to management what turned out to be a big mis¬
take.
I suggested we cut back our sustaining area advertising budget to a
bare-bones minimum in order to turn up the money for sampling in
the expansion markets. Moreover, I recommended that our introduc¬
tory advertising budget be substantially less in expansion areas than
in the half of the country we had already introduced in, in order to
turn up needed funds for sampling.
The results were depressing, if not catastrophic. We missed our share
objective by 20% in the expansion areas! We did some consumer
research to try to ascertain why. The answer was simple: Although
men tried a sample of our product, they were not convinced of its
superiority, in the way they had been in the original half of the coun¬
try we introduced in. The reason: We did not have sufficient adver¬
tising support to make the sample serve as a see-for-yourself validation
of our advertising claims. The men tried our product without know¬
ing what to look for.
I’ll never sacrifice one element in the marketing mix for another in
the future—without testing the premise first.
Moral: Don’t ask promotion to substitute for advertising.10

10 Reprinted with permission from the January 18, 1971, issue of Advertising Age.
Copyright 1971 by Crain Communications, Inc.
 CENTS-OFF COUPONS 301
The Dealer
Program
We are all familiar with the coupons issued by advertisers of grocery
and cleaning items and other preparations—50 off, 100 off, 200 off the price
of a package presented at the shopping center. Think of this as a massive
sampling campaign, supported by the advertising done in behalf of those
products. It attracts new users, brings back into the fold those who have
strayed from the product, and reinforces the attitude of present users as to
the desirability of the product.
The extent of couponing may be surprising. It is estimated that over
800 companies distribute about 10 billion coupons per year, of which roughly
1 billion are redeemed, for a saving to the consumer of about $100 million.
(Although the redemption averages 10 percent, that from direct mail is 15
percent.)11
Coupons are distributed in a number of ways. Many are contained in
the packages consumers buy (subject to FDA regulations in the case of foods).
They may be sent by mail, but because of the high postage costs, it is now
common to share in a joint mailing of coupons with a number of noncom¬
petitive products. Often, coupons are issued through magazines; many adver¬
tisers have the coupon appear as a special insert in connection with their ads.
Coupons appear in the daily newspaper (low response rate), and in the Sun¬
day supplements. The great swing for the distribution of coupons, in the light
of the postal increases, has been to the special loose newspaper supplement.

DEALS

There are two types of deals: consumer deals and trade deals.

Consumer deals. A consumer deal is a plan whereby the consumer

can save money in the purchase of a product. It may be a direct price reduc¬
tion, of which the cents-off deal is the most familiar form. Or it may be a
merchandising deal, where three bars of soap are wrapped together and sold
at a reduced price, or when a package of a new member of the family is at¬
tached to a package of the present product, at little or no extra cost—an effec¬
tive way of introducing a new product.

In a study of price deals, Hinkle reports:

—The closer deals are to each other, the less effective they are. Brands
which deal frequently encourage even regular customers to stock
up and wait for the next deal.
—The majority of annual price reductions occur in high-volume pe¬
riods, but off-season deals are more effective.

11 Report in Printers’ Ink, March 25, 1966, p. 42.

 502 —Dealing is more effective for newer brands than for old.
The
Advertising —Deals are as much as two to three times more effective when a
Campaign brand’s advertising share level is maintained.
—Deals are fruitless for products whose sales have been going off
steadily. "An assessment should be made of the more basic cor¬
rective measures.” 12

Deals may provide the theme for a strong local advertising campaign.
Cents-off deals must meet Federal Trade Commission requirements.

Trade deals. A trade deal is a special discount to the retailer for a

limited period of time. It may entail a minimum purchase; it may be a sliding
scale of discounts depending on the size of the purchase. It may be in connec¬
tion with a consumer merchandising deal, offering a discount on the purchase
of a given number of consumer deals and size assortments. It may include the
counter displays to help sell the product to the consumer. All trade deals are
subject to the restrictions of the Robinson-Patman Act, which we shall discuss
later in the book.
Trade deals are extensively advertised in the trade papers.
There is a division of opinion on the efficacy of deals. After analyzing
over a hundred different Scott promotions, James D. Stocker, advertising man¬
ager of the Scott Paper Company, reported, ". . . much to our surprise, less
than 15 percent of these forcing promotions actually paid for themselves in
terms of new permanent business.” 13

COOPERATIVE ADVERTISING

Cooperative advertising is that placed in the local media by a retailer

or local distributor for which he is reimbursed by the national advertiser. The
repayment may be 100 percent, 50 percent, based on the volume of business,
or whatever terms are agreed upon. But whatever the terms are, they must be
available to all other distributors in the market on the same proportionate
basis. That is the crux of the federal Robinson-Patman Act, which governs
cooperative advertising, and which is enforced by the Federal Trade Commis¬
sion. (We discuss this at greater length in the final chapter of this book.)
Usually the national advertiser will provide mats for the newspaper
advertising, videotape for television, scripts and recordings for radio, and
printed matter for any direct mail, in each instance allowing room for the

12 Harvard Business Review, July-August 1965, pp. 75-84.

13 James D. Stocker, "The Effects of the Growth of Advertising Volume in Mer¬
chandising Policies," address before AAAA Eastern Annual Conference, New York City,
November 1962.
dealer’s name. It is estimated that over 50 percent of all department-store 303
The Dealer
newspaper advertising is cooperative. In such instances, the store may not use Program
the advertiser’s mats; it may use the cooperative allowance for the store under
its own logotype. Or it may use mats of different manufacturers in creating a
full-page advertisement over its own name, called an omnibus advertisement.
It may then charge each manufacturer a pro rata share of the total cost of the
whole advertisement.
The idea for cooperative newspaper advertising was originally
spawned by the fact that in many papers the local rate was much lower than
the national rate, so that even if the national advertiser reimbursed the retailer
100 percent, he might still be getting the space at a lower rate than if he
placed it directly at national rates.
The retailer might also be disposed to provide room for store dis¬
plays for the product, if it is advertised over his name; and also to make sure
the item is in stock if a special cooperative ad on it is run.
Among the advantages of cooperative advertising to the retailer are
that it helps defray part of his selling costs. He gets the local prestige of the
additional advertising. Furthermore, the space used by a manufacturer’s coop¬
erative advertising may help him earn a better rate for all his advertising. The
disadvantage is that even if the store has to pay only 50 percent of the cost,
that sum may not be justified by the profits on the sale of that product, or the
manufacturer’s ads may not meet the special style of the store.
What’s the catch to all this? There are a number.
In the first place, some newspapers are going on the single-rate basis;
hence the potential saving between national and local rates is decreasing. There
are often difficulties and disparities for the advertiser in the store’s billing
procedure. Stores may not use the manufacturer’s mat; rather, they may pre¬
pare an advertisement in the store style, charging the manufacturer the pro¬
duction cost, and changing the image of his advertising. His advertisement
may be placed in the weaker paper in town to help the store earn a quantity
discount there. As a result, the manufacturer may lose strict control over the
format of the advertising, as well as over the choice of media.
IEW WESTINGHOUSE
IEAVY DUTY 15 WASHER
NGINEERED IQ PREVEN
OSTLY REPAIR BILLS
me a rugged, two-fisted washer that’s checked and tested through and through to Big 15 Pound Capacity
e-free—one that can take big loads as well minimize the chance of costly repairs. That's To handle today's big wash loads, we de
all loads and get them thoroughly clean.” what it takes to build a trouble-free, heavy duty the "Heavy Duty 15” to tackle 15 pounds (
s what we found in survey after survey on washer. There just isn't any other way. toughest wash. And believe us, it can. To
/vomen want most in an automatic washer. New Trouble-Free Transmission it, we tested our big sturdy agitator with
:h these objectives in mind, our engineers We built the transmission (the cause of costly of the hardest wash loads we could dre;
to work and developed the new “Heavy repair bills) half again as large as those found in (sheets, shag rugs) to make sure it coul
L5”~our most thoroughly tested automatic other automatics. We tested it part for part, hour the strain and get clothes thoroughly elec
;r in 25 years. after hour to make sure it won’t break down. tested it for delicate things too, and it was a
Tested 138,000 Hours Then we developed a new heavy duty suspension gentle about it.
its porcelain top right down to its massive system and tested it for months with the tough¬ Our "Heavy Duty 15” is rugged and depen
Dottom, the new "Heavy Duty 15” Laundro- est off-balance wash loads possible. Result: no Good reason for putting yourself on a solid f
Automatic Washer has been checked, re¬ shimmy, shaky antics. with one soon —at your Westinghouse de

You can be sure if it’s Westinghouse

Dealer Advertising Back of National Advertising

To get dealer support back of this national consumer magazine advertisement,

an extensive cooperative advertising program was prepared, shown on the
following pages.

504
ISlUlg inrun*' liiii inuttm inr /in~i n't
VY
'Y 15 Top Loading Automatic Washes
THIS ENT
AD IS MAT
NEW WESTINGHOUSE This is a 1
line newsp

HEAVY DUTY 15 WASHER: ad (7 colu

by 250 lim

' TRANSMISSION OF
istinghouse built the
sion (the cause of
pair bills) half again
as those found in
tomatics. It has what
ENGINEERED ID PREVENT This type o
will stimulat
terest in the

COSTLY REPAIR DILLS Westingho

to run this trouble-
ivy duty washer.

Laundry L

The Dealer Merchandising Program

This was the first page of a 12-page newspaper-size dealer bulletin,

listing the advertising and other dealer aids to be used concurrent
with the appearance of the national advertising.
 NEW WESIINQHOUSE
hejkydotkw.&'W’:
ENGINEERED TO PREVENT
COSTLY REPAIR BILLS

Here are the full page ads as

shown on pages 4 through 10
THE WASHER DESIGNED TO DO BIG
in greatly reduced versions...
15 POUND FAMILY-SIZE LOADS
QFYOUH TOUGHEST WASH WITH EASE;
These are shown to point out that the basic full page ads can be adapted to
run in almost any size you wish from very small versions like these through
4 column versions, 6 column versions or what have you. This means you
aren't “locked in” to any one size. Any of these ads can be tailored to fit
your own particular requirements. Your newspaper rep. with the aid of your
clip book can help you produce these ads.

DEALER NAME

i 2BIY3S wiSk'gfc j
i! EMBINEEHED1 LMittyi J
'QUiF < COSTLY REPAIR BILLS viriiim

laundy Lzzzg
w~r1m ’Wnrf/J! id Pmrrt T•
Ymilt in\ nnd rhrfir’ nil @ Westuighuukti 1 !
\kstinybouse Hany Dufy 15...TupLacar/ty kutomfayjodjprr- ordTixtiMi/t} Gat Dtyaw

= <ai(r vw •rap

Ijg] 'sarkbn arlivild 'nr*\n l

Madera m/nler.. :
Onfy 'tirstin<jhniist\\*£n/\ (

; W3

| W

DEALER. NAME DEALER NAME DEALER NAME

NEWWE5TINEHQUSE
EafeVTPLlYmjiSHER:
ENGINEEREDTO PREVENT
COSTLY REPAIR BILLS

DOOM
DEALER NAME (DEALER HAfflF)

A page from a portfolio offering variety of mats and suggestions for

cooperative newspaper advertising.
 Review Questions 307
The Dealer
Program
1. Define briefly each of the six most 8. What are the principal benefits to
frequent forms of dealer programs. the advertiser of conducting a con¬
test?
2. Discuss the guidelines the retailer
should use in deciding what items 9. Define sampling, and describe how
warrant point-of-purchase promo¬ its use can be integrated with media
tion. advertising.

3. Describe some of the evidence that 10. Describe the role played by cents-
in-store promotional support pays off coupons. In what different ways
off for the retailer. are coupons distributed?

4. Describe the major kinds of selling 11. Distinguish between consumer deals
ideas from which good displays can and trade deals.
grow.
12. Define cooperative advertising, and
5. Based on visits to supermarkets, de¬ discuss its advantages for the manu¬
partment stores, and drugstores, facturer and for the retailer. Its dis¬
what current display ideas strike advantages.
you as particularly effective? Why?
13. From current advertising, find an
6. Distinguish between give-away and example of a contest being promoted
self-liquidating premiums. in media advertising. Of a coupon
offer in media advertising. Of co¬
7. What are the characteristics of a
operative advertising.
good premium?

Reading Suggestions

Anny, "A Premium User’s Nightmare,” Nelson, Robin, "Marketing Incentives

May 10, 1968. Also in Kleppner and Are on the Rise Again,” Marketing/
Settel, Exploring Advertising, p. 258. Communications, November, 1971,
Business Week, 'A P.O.P. Art Form pp. 26-29-
that Turns Shoppers On,” January 8, Offenhartz, Harvey, Point-of-Purchase
1972, p. 36ff. Design. New York: Reinhold Book
Davidson, John R, 'FTC, Robinson- Corp., 1968.
Patman and Cooperative Promotional Point-of-Purchase Advertising Institute,
Activities,” journal of Marketing, Trade Practices and Current Proce¬
January 1968, pp. 14-17. dures among Buyers and Sellers of
Everett, Martin, "One Small Step for Point-of-Purchase Advertising Ma¬
Co-op Advertising,” Sales Manage¬ terials. New York: 1967.
ment, April 3, 1972, pp. 23-27. Seipel, Carl-Magnus, "Premiums—For¬
Grocery Manufacturer, "The Value of gotten By Theory,” journal of Mar¬
In-Store Support,” 1971. keting, April 1971, pp. 26-34.

Hinkle, Charles L., "The Strategy of Sorenson, Douglas, "Three Views of Co¬
Price Deals,” Harvard Business Re¬ operative Advertising,” Journal of
Advertising Research, December 1970,
view, July-August 1965, p. 75.
pp. 13-19.
Long, Durwood, "Selectivity: Key to
Effective Sampling Techniques,” Ad¬
vertising and Sales Promotion, No¬
vember, 1971, pp. 38-41.
22
Appraising
Ads and Campaigns

With all the money being invested in advertising, it is not surprising that
much thought and much money is being spent in seeking to appraise the effec¬
tiveness of advertisements. Every advertiser would like to know which of the
ideas submitted for his approval is best for his purpose. Every advertiser wel¬
comes proof of how effective is the campaign he is currently running. For
these purposes, various research methods have been developed, and new ones
are constantly appearing.
We have pretesting of ads and post-testing of ads. Pretesting of ads
(sometimes called copy-testing) usually means ranking a series of alternate
advertisements before embarking on a major advertising expenditure. Post¬
testing of ads means appraising the effects of advertisements after the launch¬
ing of a major expenditure, to see what can be learned for the next round.
The differences are more in purpose than in technique.
The form of advertising where the sales results per dollar of adver¬
tising expenditure can be traced with the greatest exactitude is mail order and
other forms of direct-response advertising. Where every printed advertisement
carries a coupon or enclosed order form, identifying the source of the order,
and where every TV commercial soliciting direct response gives an address
or phone number by which those replies can be traced, an advertiser knows
exactly how much business was produced for every dollar spent. By means of
split-run tests (which we will discuss further in the chapter on Direct-
Response Advertising), a direct-response advertiser can also test two different
coupon advertisements appearing in alternate copies of a publication, giving
him a numerical basis for judging which ad is the better. Direct-response ad¬
vertising is indeed the most scientific form of advertising.
But measuring the effectiveness of national advertising represents a
more complex problem. The national advertiser knows what his sales are,
day by day, but many influences besides advertising may have helped produce
those sales. Even before his product got on the shelf from which a housewife
bought it, someone had to convince the store’s buying committee to stock it,
and much of the effectiveness of the advertising depends upon the success of
the sales department in getting that distribution.

308
 As a product gets more costly, the role of the personal salesman be¬ 309
Appraising
comes also more important in closing the sale. Automobile advertising tells Ads and
about the car and also tries to get the prospective buyer to go to the dealer, Campaigns

who will be responsible for the consummation of the sale. Thus an ad for the
Renault car, headlined "Last year over four million people bought front wheel
drive. Shouldn’t you at least test one?" was targeted to get the reader to go to
the showroom. An ad for Carrier air-conditioning units concludes, "Only a
Carrier dealer can help you decide. To find the one nearest you, look in the
Yellow Pages.” After presenting its attractive Caribbean tours, an airline ad¬
vertises, "Ask your travel agent for our Caribbean tours brochure, or phone
us." Every household-appliance advertisement urges the reader to see a demon¬
stration of the new model at the dealer s. The advertising is designed to interest
the person sufficiently in the product so he will get in touch with the dealer.
The sales of a product may also have been helped by deals and pro¬
motions, price changes, and sales-department drives; they may have been
retarded by the weight of advertising by competition, and their deals and
promotions. How does one properly credit advertising for sales when it is
only one part of the marketing mix in a competitive market?

Advertising Goals vs. Marketing Goals

Many men have sought an approach to the problem of appraising national ad¬
vertising in the light of all these outside influences. Much of the discussion
on the subject in recent years centers around a report, by Russell H. Colley,
prepared for the Association of National Advertisers.1 The thesis of this study
is that it is virtually impossible to measure the results of advertising, unless
and until the specific results sought by advertising have been defined. When
asked exactly what their advertising is supposed to do, most companies have
a ready answer: to increase their dollar sales, or to increase their share of the
market. But these are not advertising goals, Colley holds; they are total market¬
ing goals. Obviously, national advertising alone is not intended to accomplish
this task, but rather the use of it as part of the total marketing effort. The first
step in appraising results of advertising, therefore, is to define specifically
what the company expects to accomplish through advertising. The report de¬
fines an advertising goal as "a specific communication task, to be accomplished
among a defined audience to a given degree in a given period of time.
As an example, the report cites the case of a branded detergent. The
marketing goal is to increase the share of industry from 10 to 13 percent. The
advertising goal is set as increasing among the 30 million housewives who own
automatic washers the number who identify brand X as a low-sudsing deter-

1 Russell H. Colley, Defining Advertising Goals for Measured Advertising Results

(Association of National Advertisers, Inc., 1961).
 510 gent that gets clothes clean. This represents a specific communication task that
The
can be performed by advertising, independent of other marketing forces.
Werbung
Campaign The report speaks of a marketing communications spectrum ranging
from an unawareness of the product to aivareness, comprehension, conviction,
and action, in successive steps; and the way to appraise advertising, according
to this view, is by its effectiveness in the communications spectrum, leading
to sales.

Differences of Opinion

Researchers differ on judging the effectiveness of national advertising on a

communications yardstick rather than just by sales. A report on the subject
by the Marketing Science Institute says:

In general, total sales are not considered a valid measure of advertising

effectiveness, because of the presence of other influencing variables.
Sales as a criterion may have some validity if advertising is the most
prominent variable, or, in the case of mail-order advertising, when it
is the only variable.2

On the other hand, there are those who "deplore the general acceptance of
measures of advertising short of sales or purchases; they frown on communi¬
cations measures as the sole criterion.’’3 Yet even these critics concede that
the effectiveness of communications in general is more readily measurable,
and for a given expenditure is more reliable, than sales alone.

Appraising the Individual Advertisement

To appraise advertising in terms of its communications effectiveness, research

patterns such as the following have been developed:

Awareness
Was the advertisement seen?
Was it linked to the advertiser?
Recognition tests (of print advertisements) and recall studies
(for television commercials) are the most frequently used methods
of testing individual and combination ads along these lines.

2 Patrick J. Robinson, ed., Advertising Measurement and Decision Making (Boston:

Allyn & Bacon, Inc., 1968), p. 66.
3 Ibid., p. 67.
 Knowledge and understanding 311
Appraising
What specific points did the ad communicate? Ads and
What miscommunication may have occurred? Campaigns
Copy playback testing is most often used to examine these aspects
of individual ads.
Attitudes
Did the ad improve the consumer’s favorable attitude toward the
brand?
Braiid preference and attitude shift studies are the most frequent
techniques used to assess the impacts of ads on attitudes.
Action or trial
What sales or inquiry action did the ad generate?
Comparison testing is widely used here.

Awareness

Readership tests. The first step toward judging the effectiveness of

a print advertisement in delivering a message is to judge how many people
saw it and read it. In the 1930’s, Dr. Daniel Starch began the first service to
appraise the readership of ads in the more prominent magazines, and this led
to the widely known "Starch Reports" of today—a continuing research
operation.
An interviewer carrying a copy of the latest issue of the magazines
being surveyed calls on households per a selected sample, and asks the person
to be interviewed which magazine he or she has recently read. If the answer
is one of the publications being surveyed, the interviewer opens his copy, and
asks the person to go through it page by page, to point out which advertise¬
ments he remembers having seen, which he looked at carefully, and which he
read. For this information, the advertisements are rated as follows:

"Noted" —An advertisement that a person has previously seen

in the issue being studied.
"Associated" —An advertisement read by a person who not only
"noted" it but also saw or read some part of it that
clearly indicated the brand or advertiser.
"Read-Most" —An advertisement in which a person read half or
more of the written material.

These reports are made weekly or monthly for the magazines studied.
On the following report, the key figures are the "Seen associated"
figures in the first and second columns on the left. Among men, the auto¬
motive ads ranked highest. Among women, food, clothing accessories, and
household furnishings ranked high; automotive ads ranked low confirming
the facts that a person’s total interest in an ad depends upon his interest in the
product.
 The Starch Reports are used by advertisers to learn how well their advertisements do in getting attention and in being read, in
Courtesy: Daniel Starch and Staff
Copyright. 1964 by Doniel Starch and Staff

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 Among men, a one-page, black-and-white ad for Volkswagen had 513
Appraising
the greatest number of readers per dollar—81. In the same issue, a Mercury Ads and
four-color bleed ad had only 49 readers per dollar. A Necchi Sewing Machine Cam paigns

ad got 100 readers per dollar among women, compared with a Singer products
ad that received only 5 5 readers per dollar.
These reports must be compared over a period of time to draw any
final conclusions about the ad’s ability to get attention. They give no clue to
the further reaction of the people to the advertisements; that calls for other
types of research.
The testing method Starch used is called aided recall. There is an¬
other testing method called unaided recall. These two methods are widely
used in TV research: "Did you watch the Chrysler program last night?"
(Aided recall) "What programs did you watch last night?" (Unaided recall)

Television-viewing research. Television advertisers interested in

knowing how well their commercials are listened to, and how well people
who viewed the commercial remember the product and got its message, are
users of day-after recall studies. Names are systematically drawn from the tele¬
phone directory, and the interviewer will call with questions such as these:

1. Determining that respondent was in the program audience—"Were

you watching TV last night between - and - o’clock?”
. . . "Please tell me if you saw any part of the-
program on Channel_between-and-o clock last
night." . . . "What was the program generally about?"
2. Unaided recall of ad—"While watching that program, what com¬
mercials do you remember seeing?"
3. Aided recall (aid can be at several levels)—"Did you see a com¬
mercial for [product]?" "Did you see a commercial for [brand]?"
4. Content of the commercial (after recall)—"What do you remem¬
ber about the [brand] commercial?" . . . "Anything else?" . . .
"What other thoughts about [brand] were in the commercial?"

The chief usefulness of such tests is in learning not merely what percentage
of viewers remember seeing the commercial, but what percentage of these
carried away the message about the product that the advertiser was trying to
convey. The two tests are frequently combined.

Knowledge and Understanding

Playback. One of the most useful and used forms of communica¬

tions testing is that of the playback—having a reader or viewer tell you in his
own words what message the advertisement delivered to him. What a reader
or consumer gets from an ad is often different from what the advertiser had
 514 intended to convey. The question is: What message comes through?
,, On the following page we have the report of a playback on a Scott
Advertising o i o i 1 J
Campaign Family Placemat ad. The captions read:
New Scott Family Placemats
So much like cloth it’s hard to believe they’re disposable
Thrifty enough to use every day!
That, obviously, was the message the ad was designed to deliver. Yet notice
how these qualities ranked below two other attributes of the product that
appealed more to the reader.
The value of all playback testing is not .only to see clearly how the
desired message came through, but, when it did not come through, to figure
out why.
 ✓

PLAYBACK PROFILE

Scott Family Placemats

% Respondents

One or more sales points 100

Variety of designs, colors, patterns 89

With flowers 26
Blue, aqua 11
With stripes 11
Attractive, 'beautiful 71
Disposable 66
Economical, inexpensive 47
Thrifty, thrifty enough to use every day 24
New 42
Thick, heavy 37
3 thicknesses 24
Saves work, time 34
Saves washing, laundry 18
Saves ironing 11
Absorbent 32
Like cloth 26
Variety of uses, for any occasion 24
For snacks, TV snacks 11
Dresses up the table, brightens, improves 21
Use for company, entertaining 18
Practical 16
Good for children 16
Strong, sturdy, durable 11
Convenient, handy 11
Good quality, best 11
"Scott makes it better for you" 3

* * * * * *

Descriptive Mentions:
Reference to blue mat/boy at table illustration 42
Reference to pink flower/pink mat illustration 26
Reference to yellow mat/mat on tray illustration 26
Reference to package/package in cart illustration 16
Mention blue border 1
Favor to product (excluding users) 94
Disfavor to product 3
Favor to ad 13
Disfavor to ad - 1
Average number of ideas per respondent 5.7

Courtesy: Scott Paper Company

What is the message the advertisement
Advertising Agency: J. Walter Thompson
really delivers? This research was de¬ Company
signed to find out what impression and Research: Gallup &'Robinson, Inc.
specific facts about the product the ad¬
vertisement left with the reader.
313
 316 Sharpening the focus. It is easy enough, in testing mail-order ads,
The
Werbung
to decide which ad is the best of a series; you count the orders from a split-run
Cam paign test. But how do you decide which is the "best” ad to run out of four ads being
considered for use in national advertising? You have to set up measurable
yardsticks in terms of exactly what message about the product you wish the
advertisement to deliver.

The Kelvinator Test

Here is how Kelvinator handled the problem in selecting the adver¬

tisement for a campaign theme for their refrigerator; from among four differ¬
ent ones which they produced and tested:

goal of ads: The ads were tested in terms of the interest they had
for a housewife, and how much conviction they carried.

Observe, this was not a test of which ad the housewives "liked best,”
but of which ads interested them the most, and left them feeling
most convinced of the claims made.

methods: This was planned as a paired comparison test. Five com¬

pletely finished ads were used. One was a control ad that had been
pretested. Four hundred interviews with women were arranged and
completed, divided equally among Hartford, Indianapolis, Wichita,
and Atlanta. In each city, each woman was shown the control ad and
only one of the test ads, and asked questions that revealed which ad
was more interesting and which more convincing, so that each ad
was exposed to a total of 100 women in different cities, each com¬
pared with the same control ad. Compare the figures for the best
scores and the poorest. (Can you figure out the reasons?)
 N0W...N0 GEARS
TO GO WRONG!
Kelvinator eliminates
mostcosHy
trouble spot.....
creetes cleaner,
safer washing
Through an Ingenious design,
Kelvinator has built a newkind
o( faithfulness into washers.
The new Kelvinator has nogears
to wear out or break down and
create repair bills. Its drive
mechanism is so trouble-free
it carries a 5-year parts guar¬
antee ... unequalled in the
appliance business.

DOES WHAT
A WHOLE NEW IDEA
OTHER AUTOMATICS
It washes by recipe IN WASHING CANNOT
Even with the fussy fabrics-you set it once and walk away I Kelvin,
actually inv*nl«0 a ne* \yU»r
A'osi astonishing ot an me ne»
kelvinator IS more completely
any dilactive port during the first year alter Ot wishing with importanl automatic and Handle man me
Here is th* first washer tMt is automate lor ah Ipilike other aitomitcs * ined program
purchase and lor any Active drive matJsanism advantages you won't Imd m ineti program automatics ol Agitator tjpot drive and
oashtrs Kefvmetor has all the oash limes,
ItKCWin m your wash not iusl some part during the neil lour yoars These are the any oine' washer Inert is an tolly n handles every wish policy ol never making a change | crankshaft, sealissf"biy
•ashing speeds and water temperatures you reed automatic pre SC'uttoing cycle washer and pad assembly boot
Up to noo. when you 0W *11 your spttsel thirygy
to do everything right and •! has them auto
mehcelty Along oith it all. come lint filters,
drive mchamsm parts oh<h are ewered lor
live yoars Agitator toot, drive and crankshaft,
catted me wag c Minute whicn
eliminates pre *• rubbinq by
cottons o' tmens Inere is
•astefully iusl for change's
sake or iust because another 1 seal lube and seal assembly
| pulley and bearing assembly
you stood over your washer. wetting lor cycles to never a need to slop the me year has gone by instead
•pirate dispensers AAagc-Mirute Pre-sc rubbing saai assembly oasher and pad assembly boat nano there is a different kind right or Iflt hand spring
cn*ng# Then you made ell those special idiust-
»*nts by hand Or else. you |ust trustod erery
and a vary spec ui value COM Constant sail tube and i«i assembly pulley and
bearing assembly right or lilt-hand spring
ck washing action catted ureo
turbulent Washing wruch
Chine and cnange cycles by
nano even io< special
Kelvinator s energy — and
! lunds — are directed toward
or provide
a new pari loc any 0 a«ti*f 1 thrust washer towe* bearing
i ban bwannq. and bottom nous
base Improvement This mean* not oasting continued product improve part during the Iirsi year alter
thinq to I toesh-end-weer" cycle ohch tr«ts money making yaerfy model changes just lor the thrust oasher looer bearing, ball boaring, energiyes the water to do the purchase, a-— — » -- - mg assembly Replacement
menls improvements made v>->—•
<11 special tabre* eactty alike Their washing sake of change It means building vwrthonile and bottom housing assembly Replacement C loaning Most oIRf' «ulO- avaiiaOle to me ouOlic as soon drive mehemsm part during and service call tabor and
instructions shoo you noo wrong this is' developments into wery Kehnnetor as soon as and service-tali labor and transportation a maiK washers still beai me | mey a>e tested and approved me neat lour years These are ' Iran.porlation ol the parts it
the parts, it any, are the responsibility oi me clothes back and lortn »iih a the Jn»e mehenism oaris any are the responsibility
thty're teslod and appepved
How dtfftrtnl with this Kefvmetor' It his th« Customer hard surtacad agitator 'he EXTRA VALUE THE 5-YEAR the Customer
kelvinallX method is so much
port act washing rec tpe lor any fabric you'n
hy Look at ties Vyaer parts ^xrardeo The Super-Cycle more efficient it can even wash i FOR YOU PARTS GUARANTEE! ^ .1. urt i/imatod
uuty to odsh You «oii throo simp*# sotting* i tne Super Cycle Kflvmato' is
The Super-Cycle KELVINATOR
walk ewwy <nd your Kefsnnator dots <11
th* rest. all by itsod
Kehnnator will repair or provide a n» port lor Kelvin ator without tearing it a product of Constant Basic

Interest.26% Interest.33%
Conviction .33% Conviction .52%

Here's a drive mechanism that's really foolproof!

Trouble-free Kelvinator
washergivesyou
5 Yearfree parts Guarantee!

Compare the
EW

KELVINATOR
1
At last An automatic washer so trouble-lree
Kelvinator backs it with a spociai S-Year Free
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Kelvinator gives you a lull lour year Replace¬
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pari tails due lo materials or workmanship
Kelvinator provides a replacement pari tree
ol charge 1
A/o other washer
deans dothes so
thorough ty yet
so gent/y!
Every day. new washing rules? Nevermind. This new Kelvinator
will always do Them all. and do them right
Kelvmalor's Deep Turbulent *oshing developments that result in a better product com* to you as soon
True, there are more fabrics new wash 'n wears more diflerant
aclion cleans clothes so thoroughly washing instructions than ever as they'ra fully teslod and approved
even grimiest collars and culls come
true an autometic wesner with Tned programs can t foftcMw •tsl of all Keivinetor gives you th *. S-year ports guarantor
out spotlessly clean yet it *oshes all me different instructions So you stand over the machine,
out all soil and gnme so gently you Kelvinator will rapair or provide a n*w part lor any defective part
bring you changing cycles by h*nd during thi first yoor after purchase, and for any dofidlvi drive
can trust your sheerest things m
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i the new Kelvmalor In fact, tests
Now here's the news no metier how tussy the febric the new
Kelvmalor has all the washing combinations to do the whole k»
michanism part during th# ne*t four years This# ari tha drive
mechanism parts which art covered lor fn* yiirs AgiUtor boot,
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i snow Kelvinator can even wash a

■
itself You m*«*Thr** simple settings and that's all' dr.ve and crankshaft seal assembly. washer end pad essentofy
paper nap«in without tearing it! boot seal tub* and veal assambty pulley and bearing assembly
Other unusual things you'll love about this Kelvinator
r.ght or left hand spring, thrust washer lower bearing, ball

. * choice of washing speeds water temperetures washing tim*

Magic Mmute automatic pr* scrubbing No g*ars to break down
Separate dispensers Lint filler Normel and smell load cycles
bearing and bottom housing essembty Replacement ind
service-call labor and transportation of Iht parts, if any. art the
responsibility of the customer
You're always sure of the newest with"Kelvmalor A Keivmetor
policy called Constant Basic improvement insures this It
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For work-free, carefree washdays get the new trouble-free

Interest.45% Interest.14%
Conviction .51% Conviction .21%
Courtesy: Kelvinator Company
Advertising Agency: Geyer, Morey, Ballard, Inc.
 518 Attitudes
The
Advertising
Campaign The degree of a person’s change in attitude toward a product can be
measured. Usually it takes a number of ads over a period of time to change
an attitude toward a product, but some change can take place even after one
ad, and this change lends itself to testing.
Various methods have been set up for testing attitude changes within
the span of a single TV commercial. In one theater testing plan, women are
invited to watch a thirty-minute film program, which includes commercials
other than the ones being tested. They will be awarded a shopping bag of
products, and before the test begins, are asked to choose the products they
would like. After the film showing, they are again asked to prepare a list of
what they would like. (The amount of the products is large enough to warrant
thoughtful consideration of the brands.) By comparing the "pre-” to "post”
preferences, the relative effectiveness of the commercial can be weighted. This
test can be repeated with other groups, with alternate commercials.
Attitude changes are much more readily observed after exposure to
a series of ads in an advertising campaign. We shall treat their measurement
further when we discuss campaign evaluation.

Hidden-offer tests. Often a national advertiser who has a long copy

story would like to know which ad, or which publication, gets the best reader-
ship. One technique is to offer something valuable or interesting to the reader.
To make sure that a casual reader did not see only this free offer and send in
for it, it will be set just like the rest of the copy, at its end, without a caption
to call attention to it. This is referred to as a hidden offer. Its purpose is not to
get as many responses as possible, but to get as many as possible from the
people who read all the way through the ad. In this way you may get a clue
as to the ranking of media by running the same ad in different media. Or you
can get a clue as to ranking of ads if you run different ads in the same medium.
The important point to keep in mind is that this is merely a comparative test
of ads or media, not a test of the total effectiveness of the ads.

Action or Trial

The role of coupons in a national advertisement. You see many ad¬

vertisements with coupons that say in substance, "See your dealer or send
coupon for brochure.” These are not advertisements for direct-response selling,
because the sales are made by the dealer. They are national advertisements, with
a coupon tie-in idea that may provide leads for dealers. How do you appraise
the effectiveness of such advertisements?
You may have two ads for the same proposition. Ad A brings in more
coupons than ad B. But the dealers get more calls after ad B runs. Both dealer
and advertiser are happier with ad B than with ad A. Hence the coupon
count is no reliable index. Coupon responses to national advertisements, how¬ 519
Appraising
ever, are useful in appraising media that use the same ad. They are also useful Ads and
in comparing different pieces of copy in one medium as in the "hidden offer” Campaigns

test.

Before-and-after Sales Tests

Sometimes you may be able to create a completely controlled sales

situation in which you can test an advertising idea on a before-and-after sales-
test basis. A good example is provided in the following test by Kress to judge
the effectiveness of a point-of-purchase end display for use in supermarkets:

The research covers a four-week period within the three stores. During
that time, 19 items and their substitute products were studied under
various selling situations.
The test of each particular product was carried on in three segments.
1. Test period number one (the normal week)
a. The test product is sold from its normal shelf position at the
regular price and is not promoted.
b. Its substitute products are also sold from their normal shelf
positions at regular prices and receive no promotion.
2. Test period number two (the display week)
a. The test product is given special promotion and display. In
some cases the test product is also placed on sale.
b. Its substitute products are sold from their normal shelf posi¬
tions at regular prices with no promotion.
3. Test period number three (the third week)
a. The test product is once again sold from its normal shelf
position at its regular price and is not promoted.
b. The substitute products are sold from their normal shelf
positions at regular prices and are not promoted.
The results. The results of the various display weeks are condensed
into a single display week in this study. The normal week is used as
the base period. The results of the display week and the third week
are compared with it.
Effect on the sale of all Items on display. Unit sales of all items in¬
creased an average of 772 percent and dollar sales increased 673 per¬
cent when the test products were sold from end-display racks. Every
product tested in this study had at least a 100 percent increase in unit
sales from its normal weeks’ sales. The percentage increases range
from a high of 5,841 percent for canned cherries to a low of 115
. percent for cereals.4

4 George J. Kress, The Effect of End Displays on Selected Food Products Sales,
abridged ed. A study at the Graduate College of The State University of Iowa, for the Point-
of-Purchase Advertising Institute, Inc., 1961.
 520 Appraising Campaigns
The
Advertising
Campaign We are now speaking of appraising a whole nationally advertised campaign,
rather than just an individual advertisement. For determining how effective a
job it is doing, we again refer to the communications spectrum, except that
we now apply a different yardstick and different measurement research tech¬
niques. The chief questions in which we are now interested are:

Awareness
Do consumers know my company or brand?
Knowledge and understanding
What major characteristics are associated with the company or
brand?
Attitudes
How does my company or brand measure up in terms of consumer
preference?
Action—Sales
How many consumers have tried or are using the brand? What
sales were generated by the campaign?

Awareness

The first step in the learning process is to be aware of something;

therefore it is logical that the first step in the evaluation of a campaign is to
find out how many people already recognize the name of the product or com¬
pany advertising. This is particularly appropriate for new products. However,
most large, well-known advertisers do not even stop to ask this question, but
proceed directly to asking about problems of greater interest to them. Other
advertisers combine such questions with further questions, such as the areas
we now discuss.

Knowledge and Understanding

Now we move on to ask not only whether the person recognizes the
brand or company name we are talking about, but what it stands for, if any¬
thing, in his mind. What has its advertising said to him? This is the bench¬
mark—the standard of comparison. Then, after the campaign has been run,
another research among a matched group measures the difference in these
categories. This is the measure of the degree to which the advertising has de¬
livered its message.
We have an interesting report of a research in the awareness of a
company and knowledge of its message, conducted for the Weyerhaeuser Com¬
pany, which had long been advertising in magazines, and now added tele¬
vision to its schedule. The company wanted to know what the TV advertising
was doing in getting the company and its story better known. They ran a
control test before the TV advertising began, and again after it had been run¬ 521
Appraising
ning for six weeks, with the following results. (This was only one part of the
Ads and
total research.) Campaigns

Percentage-Point Change
Before-and-After Interviews

Control TV PROGRAM
(before TV program) (after)

Recognition of Weyerhaeuser Co. .9 15.2

Recall of any Weyerhaeuser
advertising 2.1 11.4
Share recalling message who asso-
ciated it with Weyerhaeuser 2.6 18.8

Stephen A. Greyser, Cases in Advertising and Communications Management (Englewood

Cliffs, N.J.: Prentice-Hall, Inc., 1972), p. 205.

The impact of the television advertising was traceable in measurable terms.

Reeves cites a research covering the degree of penetration of the
messages of different campaigns for packaged-goods products; the degree of
penetration ran from 1 to 78 percent. This report includes two advertisers,
each spending $10 million a year, who changed their stories at the same time.
One year later, one of these had registered his new message with 44 percent
of all the people in the United States. The advertising of the other registered
with only 1.8 percent of the people.5
An example of deeper evaluation of a campaign, in terms of the de¬
livery of a message, is offered by the Haag Drug Company, of Indianapolis.
Haag sought to overcome the competition of discount houses by virtue of
their wide variety of merchandise. They ran a saturation television schedule
of spots for six weeks on three Indianapolis stations and another in Fort
Wayne. The spots had a simple idea: Show that Haag carries 25,000 different
items. The creative concept was to film a small boy laboriously counting them,
one by one, with various humorous angles. (He loses count at 8,019 and starts
over, and so on.)
When the campaign concluded, interviewers asked passersby, How
many items would you expect to find stocked by a drugstore? Thirty out of
100 persons replied—unaided—"25,000.” Asked What drugstore did you
have in mind? 63 percent replied, "Haag’s.” And 58 percent volunteered the
information that they had seen the firm’s commercials.
A check survey in a Haag market where no television ad appeared
showed that the average respondent guessed 5,000 to 6,000 as the number

5 Rosser Reeves, Reality in Advertising (New York: Alfred A. Knopf, Inc., 1961),
p. 13.
of items in a drugstore. In the market with the television ad, even when
respondents didn’t give the exact figure of 25,000, the guesses were much
higher—from 10,000 to 27,000. Thus the campaign was regarded as having
fulfilled its communications objective.6 This case also proves the usefulness
of making tests at the communications level, when direct reaction in the form
of sales cannot readily be traced.
Some advertisers wish to probe deeper than just about having their
message understood; they would like to know how well it is believed and
accepted.
The Abex Company is a large manufacturer of industrial control
equipment. It began in 1902 as the American Brake Shoe and Foundry Com¬
pany; that name was changed in 1943 to the American Brake Shoe Company.
But the company greatly diversified the range and scope of its activities, with
many divisions under their own names, and in 1966 it became the Abex
Company, to give itself a chance for a better image of its many activities. The
company was particularly interested in telling the story of its new status to fi¬
nancial analysts and other members of the business community, and it launched
an advertising campaign in Time, Newsweek, The Wall Street Journal, and in
other media in the chief metropolitan financial centers. There were three
main points it sought to convey in its ads, as quoted below. The table opposite
is the result of one part of an extensive research, designed to find out how ef¬
fective the advertising was in delivering the message. This advertising repre¬
sented the Spring half of a one-million-dollar campaign. Wave 1 represents
the report made before the advertising campaign started. Wave 2 represents
the report after the advertising had run for ten weeks. The difference in the
figures is a measure of the effectiveness of the advertising in telling the story.
The research method used was as follows: 402 analysts in three differ¬
ent cities, names scientifically selected for sampling purposes, were interviewed
by phone just before the advertising began. (Wave 1) The same steps were
taken with a matched group of analysts in the same cities at the end of this
Spring flight of advertising. (Wave 2) This is known as a matched-set com¬
parison test. The findings in this test were as follows: the differences between
Wave 2 and Wave 1 reflect the impact of the advertising.

Attitudes

But even if an advertisement clearly conveys an advertiser’s message,

and even if that message is received and understood, it may nevertheless re¬
sult in "no sale.’’ In a school-committee election campaign, an extensive ad¬
vertising program was mounted in behalf of a group of "reform" candidates
campaigning jointly. On the morning after the election, in which all the re¬
form candidates lost, a campaign worker lamented, "I guess we didn’t get

6 Television Age, March 1, 1965, p. 40.

 TESTING EFFECTIVENESS OF MESSAGE DELIVERY 323
Appraising
Ads and
Wave 1 Wave 2 Campaigns

A company that has product applications in many different fields:

True 38% 46%
Not very true 3 2
Not at all true — 1
Don’t know 18 19
Unfamiliar with Abex 47 32

A company that is active in the advancement of modern technology:

True 26% 35%
Not very true 5 7
Not at all true * 3
Don’t know 22 23
Unfamiliar with Abex 47 32

A company that is broadening its scope of operations:

True 35% 48%
Not very true 1 1
Not at all true * *
Don’t know 17 19
Unfamiliar with Abex 47 32

* Less than 0.5%.

Source: Stephen A. Greyser, Cases in Advertising and Communications Manage¬
ment (Englewood Cliffs, N.J.: Prentice-Hall, Inc., 1972), p. 501.

our message across.” A trained researcher would perhaps disagree, saying,

"The group had got its message across—only too well—but the voters had
rejected it.” It is important to recognize that the reception of an idea is not
the same as the acceptance of that idea as a premise for buying the product or
proposal.
However, in the case of a company, advertising can generate a favor¬
able attitude toward it—the basis of most institutional advertising. Although
there is no definite proof that a person’s favorable attitude toward a product
is an assurance that he will buy it, nevertheless, measurements of changes in
attitude are widely sought by advertisers as an index of how effective their
advertising is in predisposing a person more favorably to the product or com¬
pany. These studies are of particular interest to heavy advertisers, and to
corporations concerned with their public image.
The most common way of gathering overall attitude information is
to ask respondents to rate a company or brand on an opinion scale. "Very
favorable” to "very unfavorable” opinions on a multipoint scale can be given.
Typically, ratings for several companies or brands would be gathered to mask
the identity of the interested firm.
 324 Another approach to attitude and brand-preference measurement is
The
to ask simply, "If you were buying a brand of [product], which one would
Werbung
Campaign you buy?”
The wisest way to use attitude tests is to repeat them with a matching
sample over a period of time to indicate trends.

Action—Sales

Experimental sales-test patterns. As mentioned earlier, some promi¬

nent researchers do not agree that communications measures are appropriate
for assessing advertising. They cite instances where communications measures
went up, yet sales went down, and vice versa.7 This school of advertising re¬
search argues that trying to measure advertising’s effects on sales means trying
to isolate those effects. They advocate the use of experiments to try to do this.
These experiments involve using control areas, using several cities, rotating
the treatments being tested through each set of experimental areas, and prac¬
ticing rigorous mathematical analysis. While admitting that designing and
carrying out such experiments is difficult and expensive, they believe this is
the most reliable route and is particularly appropriate for large-budget ad¬
vertisers.

7 See especially Charles Ramond, "Must Advertising Communicate to Sell?”

Harvard Business Review, September-October 1965, p. 148.

PRODUCTS TESTED
.

"SEASONED "READY- "PACKAGED

"DESSERT COATING TO-EAT "GROUND PRE-COOKED
REGIONS / CITIES TOPPING " MIX" CEREAL" COFFEE " RICE”

EAST
PITTSBURGH 1/3 MAG. 1/3 MAG. ALL TV ALL TV ALL MAG.

CLEVELAND ALL TV ALL TV 1/3 MAG. 1/3 MAG. ALL TV

CENTRAL
CHICAGO 1/3 MAG. ALL TV ALL TV
NOT ALL TV
DETROIT ALL TV 1/3 MAG. 1/3 MAG. TESTED ALL MAG.

WEST
SAN FRANCISCO 1/3 MAG. ALL TV ALL TV 1/3 MAG. ALL TV

LOS ANGELES ALL TV 1/3 MAG. 1/3 MAG. ALL TV ALL MAG.

Market Test Design

Source: "A Major Advertiser Tests the Effectiveness of General Magazines and Television,”
booklet published by Life, Look, and Reader’s Digest, New York.
 An outstanding example of such controlled research was provided by
Appraising
General Foods in its test to compare magazines and television in the effective¬
Ads and
ness of delivering advertising messages. The result affected a basic media Campaigns
policy decision involving millions of media dollars. Five products were used
in the test; one served as a control used in all the other tests. Six cities were
involved, representing matched pairs in three different parts of the country.
The accompanying chart shows the test pattern. Its allocation of media is
worth studying.
Although General Foods did not publish the report of its findings,
the fact is that they doubled their magazine investment from six to twelve
million dollars following, their report. Magazines were credited with getting
a higher degree of correct product identification, and delivered more of the
sales story, than did television. (This was a turn in the tide for magazines,
which long had been losing business to TV.)
Martin Mayer reports another test by a "major food advertiser" who
tried four radically different campaigns in a large number of test regions. Four
results were measured for each campaign—sales, display space, consumer atti¬
tude, and competitive activity. The cost of the research was over $100,000, and
it too took a year, "but the company plans to use the most successful campaign
until the cows come home." 8

Store sales tests. An advertiser who is not prepared to spend the

money or time on such sophisticated appraisals may nevertheless get reason¬
able answers on a more modest scale if he has a new campaign, or if he wishes
to test campaigns in different matched markets. He can arrange to get an actual
inventory count of the sale of his product in a number of stores in different
test markets through methods largely developed by the A. C. Nielsen Com¬
pany. They have arranged with such stores to have someone make an actual
count of products on the shelf as well as in inventory, and also to learn how
many new goods were received during the week. By keeping a running rec¬
ord of such sales, the advertiser can relate them to the current advertising
activity, especially if it represents a new program. In all such instances, a
rate-of-sales count must be taken before the new advertising starts to run, to
provide a basis of comparison.

Consumer usage surveys. These surveys are made by direct inter¬

views with housewives in their homes, asking specifically which brands of
products in different categories they are using now, and which they had previ¬
ously used. A similar test survey is made among a matched group of such
housewives in the same community at periodic intervals, to provide a base of
comparison.

8 Martin Mayer, The Intelligent Man’s Guide to Sales Measure of Advertising

(New York: Advertising Research Foundation, Inc., 1965), p. 6.
 326 Use of cable television. A landmark development in research has
The
Advertising been the use of cable television, pioneered by AdTel. Briefly, it is based on the
Campaign fact that in many cities throughout the country, thousands of homes get their
television reception via cable. In some cities, cable companies not only relay
the programs of distant TV stations, but can cut in with their own programs.
AdTel began by selecting one typical test city in which about 50
percent of the homes had cable television. It set up a panel of 2,000 sub¬
scribers who agreed to keep a diary of their purchases which they reported
each week (for which they were compensated).
The large advertisers for whom AdTel conducts the tests either al¬
ready have a TV schedule in that market or they, can add it to their list. AdTel
is able to cut in on the advertiser’s own program, replacing their regular
commercial with the test commercials, Test Ad A being transmitted to half
the homes on the panel, and Test Ad B to the other half. The subscribers
just see the test ads as regular commercials. From their purchase-diary entries
over a period of time, it is possible to compare actual sales to the subscribers
who saw Ad A with those to the subscribers who saw Ad B.
The ability of this system to divide a market into two homogeneous
test areas, equally subject to the factors that can foul up the usual tests be¬
tween two different markets, getting a weekly diary report of purchases, has
been expanded to other test cities. It is also being used to check rate of re¬
purchase, and alternative promotional efforts, like sampling and couponing;
also to test different levels of expenditure to determine the optimum from the
profit viewpoint. An advantage to advertisers is that it keeps tests of new
products away from the eyes of competitors.

Use of Tracking Measures

Some consumer packaged-goods advertisers use a set of "tracking”

measures of awareness, trial, and usage to appraise the effectiveness of their
advertising. "Trial” refers to people who once tried the product, whether or not
they are using it now. "Usage” refers to people who are using it now.
Measuring consumer trial and usage of a brand is not too difficult;
you conduct a consumer survey. Connecting that trial and usage to advertising
alone is usually more difficult. But this information, in conjunction with aware¬
ness data, can provide helpful diagnosis of different elements of the marketing
program, including advertising. Tracking these three factors is particularly
valuable in the instance of new products.

1. From the trends in the percentage of consumers who are aware of

the product or brand, an advertiser learns about the impact of his
advertising, particularly of the spending level and media plan, and
to some extent the memorability of the message.
 2. From the trends in the percentage of consumers who have tried the 527
Appraising
product or brand, an advertiser learns about the motivating impact
Ads and
of his advertising message. Does it convince the consumers to buy Campaigns
once? In addition, he may have distribution problems, if trial fig¬
ures are substantially behind awareness figures.
3. From the trends in the percentage of consumers who are users of
the product or brand, an advertiser learns about the caliber of the
product itself. If the gap between trial and usage is very wide, it
signals that people have tried it, but not liked it.

Other Research Methods

Because of the amount of money resting on decisions made with the aid of
research, men are continually exploring new paths of enlightenment, includ¬
ing the following:

Mathematical models. Researchers are using the computer to de¬

velop mathematical models that will relate advertising investment to a series
of resultant consumer reactions, such as being aware of the product, buying
it, and repurchasing it. One model, developed by the New York advertising
agency of Batten, Barton, Durstine & Osborn, applies particularly to repet¬
itively purchased consumer goods, and tries to estimate the sales level or share
of market necessary to justify a particular advertising spending level, and to
predict the likelihood of success for a new product.

Physiological measures. These refer more to the rating of ads than

of campaigns, or more specifically to the impact of the visual image of the ad.
One measure is of the eye pupillary response to an ad; the other a skin gal¬
vanometer response to the reading of an ad.
The foregoing measures are still basically experimental. They do
illustrate, however, the extent to which advertising researchers try to apply
scientific insights from nonadvertising fields to the continual search for ways
to identify effective advertisements and campaigns.

Research Guidelines
Conditions conducive to research. "As a rule of thumb, in judging whether
measurement of results is possible and how comprehensive such measurements
can be, the following axioms may be helpful,’’ said the National Industrial
Conference Board. To the report, which follows, the writer has added some
comments in italics:

1. The more important advertising is to the sale of a product, the

easier it is to appraise results.
Where advertising plays a minor role in the marketing mix, as
in the case of raw materials, even a 100 percent improvement in
advertising will not add too much weight to the buying decision.
 328 2. The faster the turnover of a product, the easier it is to appraise the
The results of advertising.
Werbung
The shorter the period of time elapsed between the appearance
Campaign
of an advertisement and the need to make a decision, the better.
Fast turnover means early decisions. The price risk of such pur¬
chases is usually low.
3. The fewer selling methods employed in moving a product, the
easier it is to appraise the advertising.
The results of the end advertising to the consumer by a syn¬
thetic-yarn manufacturer who sells to the weaver of the fabric,
who sells to a suit manufacturer, ivho sells to a department store,
are much harder to trace than the results of a mail-order ad.
4. The less complex the market is (and the less intense the competi¬
tion), the easier it is to appraise advertising results.9
The more competitive a market is, the more business will be
done other than by advertising—through deals, promotions, and
price changes, obfuscating the effects of advertising and the
ability to measure it.

How much testing? The desirability of conducting extensive testing

is a function, first, of the importance of advertising to the company. When
advertising is very important to the overall marketing program and a lot of
money is spent on it, then extensive research on evaluating ads and campaigns
is warranted and necessary. Thus, most major consumer-goods marketers de¬
vote much more energy and research money to testing ads than do industrial
advertisers.
A second major factor influencing the extent of advertising testing is
how major a change in the advertising program is being contemplated. The
greater the change, the greater the need for a wide testing base and for in-
depth studies. When a previous campaign is being extended with only minor
variations, however, partial evaluation will usually suffice.

Resume of methods. There is no one form of advertising research;

it is many things, depending upon the object of the research. But it would be
well to begin all research by asking:

—What is the object of the research?

_if the research provides the information sought, what will be done
about it?
—In what terms of measurement will the findings be reported?
—What results must that which is being researched attain to make its
performance acceptable?

9 Wolfe, Brown, Thompson, Measuring Advertising Results (New York: National

Industrial Conference Board, Inc., 1962), p. 9.
 We have touched, in the course of this chapter, upon many different 529
Appraising
methods of research for various purposes. It may be opportune to bring them Ads and
together here: Cam paigns

Paired comparison—split run

This is used in publication advertising for direct-response adver¬
tisers. Two different ads appear in alternate copies of a single pub¬
lication in the same space. The ads are judged by their coupon
responses.
Matched-set comparison
Conducting a test with two groups matched demographically. Each
is shown a different advertisement (or commercial) and inter¬
viewed. Responses to each ad are compared.
Sales tests
Goods actually sold, measured in units or dollars, on a before-and-
after basis.
Readership tests
"Did you read this publication? Did you see this ad? What do you
remember about it?" (Aided recall) "What ads do you remember
having seen?” (Unaided recall)
Recall tests
(TV) "Were you watching television last night? What programs
did you watch?" (Unaided recall) "Remember any of the com¬
mercials?"
"Did you see the Dodge program last night? Do you remember
what the commercial said?” (Aided recall.)
Hidden-coupon offer
An offer for something worthwhile, free or for a small charge,
made in the body of an advertisement at the bottom of the copy
and without any display line to call attention to it, designed to reach
only those who have read the entire ad. Used for making com¬
parative tests of readership; not an index of how good the ad is.

Bench marks and trend lines. Before-and-after advertising studies

of awareness, message delivery, attitudes, or sales imply that at least two
measurement points are involved—before and after. Most large advertisers
go much further; they conduct such studies on a continuous basis, in order to
provide a regular trend line of whatever elements are under examination.
Such trend-line studies enable the executives to trace the effects of the adver¬
tising in respect to the questions for which the research was designed, and to
react promptly to adverse trends.
The importance of bench marks, the "before" or control figures, can¬
not be overemphasized. May the trends following the bench marks of any
research you do go up ... up .. . up. . . .
 330 Review Questions
The
Advertising 1. What are the differences in methods 5. What are the chief problems asso¬
Campaign ciated with controlled sales experi¬
between pretesting and post-testing
of ads? ments to assess advertising cam¬
paigns ?
2. What factors tend to make it difficult
to isolate the sales effects of adver¬ 6. Explain what is meant by each of
tising for most national advertisers? the following:
a. split run test
3. Describe the basic idea behind Col¬ b. aided recall
ley’s approach to evaluating adver¬ c. unaided recall
tising. What method is favored by d. playback
men who don’t agree with this? e. hidden offer
4. What is meant by the communications f. benchmarks and trend lines
spectrum ? g. matched sample

Reading Suggestions

Axelrod, Joel N., Choosing the Best Ad¬ tisements,” fournal of Marketing,
vertising Alternative. New York: January 1967, pp. 64-66. Also in
Association of National Advertisers, Kleppner and Settel, Exploring Ad¬
Inc., 1971. vertising, p. 273.
Barton, Roger, "Are Awareness, Atti¬ Haskins, Jack B., How to Evaluate Mass
tude, and Behavior Related?” Media/ Communications. New York: Adver¬
Scope, January 1968. Excerpted in tising Research Foundation, 1968.
Kleppner and Settel, Exploring Ad¬ Mayer, Martin, The Intelligent Man’s
vertising, p. 111. Guide to Sales Measures of Advertis¬
-, Handbook of Advertising. New ing. New York: Advertising Research
York: McGraw-Hill Book Company, Foundation, 1965.
1970. Palda, Kristian S., "The Hypothesis of a
Business Week, "Why Business Is Hierarchy of Effects: A Partial Evalu¬
Spending Millions to Learn How Cus¬ ation,” fournal of Marketing Re¬
tomers Behave,” April 18, 1964. Also search, February 1965, pp. 13-25.
in Kleppner and Settel, Exploring Ad¬ Palda, Kristian S., The Measurement
vertising, p. 260. of Cumulative Advertising Effects.
Campbell, Roy Hilton, Measuring the Englewood Cliffs, N.J.: Prentice-Hall,
Sales and Profit Results of Advertis¬ Inc., 1964.
ing: A Managerial Approach. New Ramond, Charles K., "Must Advertising
York, The Association of National Communicate to Sell?” Harvard Busi¬
Advertisers, Inc., 1969. ness Review, September-October
Colley, Russell H., Defining Advertis¬ 1965, p. 148.
ing Goals for Measured Advertising Robinson, Patrick J., Homer Dalbey,
Results. New York: Association of Irwin Gross, and Yoram Wind, Ad¬
National Advertisers, Inc., 1965. vertising Measurement and Decision
Freeman, Cyril, "How to Evaluate Ad¬ Making. Boston: Allyn and Bacon,
vertising’s Contribution,” Harvard Inc., 1968.
Business Review, July—August 1962, Schwartz, David A., "Measuring the
p. 137. Effectiveness of Your Company’s Ad¬
Gordon, Howard L., "Yes, Virginia, vertising,” fournal of Marketing,
Research Helps Make Better Adver¬ April 1969, pp- 20-25.
Smith, Gail, "How GM Measures Ad Data,” in Changing Marketing Sys¬ 331
Effectiveness,’’ Printers’ Ink, May 14, tems, ed. by Moyer, Reed. Chicago: Appraising
Ads and
1965. Also in Kleppner and Settel, American Marketing Association,
Campaigns
Exploring Advertising, p. 277. 1968. Also in Kleppner and Settel,
Starch, Daniel, Measuring Advertising Exploring Advertising, p. 289-
Readership and Results. New York: Wheatley, John J., Measuring Advertis¬
McGraw-Hill Book Company, 1966. ing Effectiveness: Selected Readings.
Twedt, Dik W., "How to Plan New Homewood, Ill.: Richard D. Irwin,
Products, Improve Old Ones, and Inc., 1969.
Create Better Advertising,” Journal of Young, Shirley, "Copy Testing Without
Marketing, January 1969, pp. 53ff. Magic Numbers,” Journal of Adver¬
Wells, William D., Seymour Banks, and tising Research, February 1972, pp.
Douglas J. Tigert, "Order in the 3-12.
23
The Complete Campaign

We are now ready to take a new product and place it on the market. By
asking questions, we bring together many of the elements we have discussed.
The answers will influence the steps we take.

The Product

Does the product work? The first questions include, "Is the product
a good one? Has it passed all the government tests for such a product? Is it
technically sound? If it is mechanical, will it work properly in the hands of
the average consumer? If the product is chemical, is it effective under the
normal conditions of use?
A well-known grocery company with a bakery division produced a
frozen doughnut that won over competition in severe taste tests. The com¬
pany had good standing with the trade, and the product received good dis¬
tribution and was launched with a sizeable TV schedule. The first reports of
movement off the shelves were encouraging, but before long, widespread
complaints came in about the taste; the doughnuts came back from all sides.
The product had to be withdrawn from the market. What went wrong? Much
time was spent trying to get the answer. Finally they traced the source of the
trouble: the tests had been made when the doughnuts came fresh from the
freezer, but when they were sold through the trade there was a time lag in de¬
livery, on the grocers’ shelves, on the trip home, and in the buyer’s freezer
until they were served. In that interval there was a change in the chemistry of
the doughnut, resulting in a bad flavor.

Is the product in step with the times? Here we speak of the social cli¬
mate, which affects our ideas of the kinds of values we seek in products. On
this subject, Guy M. Minard, Chairman, Kimberly-Clark Corporation, said:

In addition to constantly studying and re-evaluating the consumer and

his desires, manufacturers are also taking a penetrating look at them¬
selves. Their own role in society is subject to the same forces of rapid
change.
Until recently, that role has been built almost entirely on a masterful
ability to produce and distribute economic goods and services in ever-

552
 increasing amounts. ... It was natural to assume that business could -533
The Complete
continue to live up to its highest calling simply by giving more and Campaign
more goods to more and more people.
However, today’s consumer will tell you in very convincing terms that
quantity is not enough, and that quality of goods and the side effects
of production and distribution also are important. Individual demands
must be dealt with—demands having to do with unit pricing, packag¬
ing, product safety, advertising claims, warranties, quality control,
and other issues such as the handling of by-products of production
which result in pollution and disposal problems. . . d

We are aware of the constant changes in tastes and styles. What is the
trend for this type of product? Is it being replaced by something better? Or
because of changes in living styles? Or technology? (You may recollect the
report that sales of spray starch have been going down ever since drip-dry
synthetic fabrics came along.) Is it part of an increasing trend, or of a waning
one? Is there any economic or legislative threat that might affect the ability
to produce and sell this product? (As this is being written, detergents with
phosphates are being banned from Chicago.)
Apropos of the entry of the Ralston Purina Company into the health-
food market, Advertising Age has this to say:

While health foods have been recording a slow, but consistent, growth
for nearly a decade, consumer interest in such products has accelerated
recently due to a combination of social and environmental pressures.
One of the strongest of these pressures is the new food attitudes of
many young people which lead them to raise questions about some as¬
pects of modern food chemistry and to seek more natural foods.1 2

Of every new product, one should ask, "Is time with it or against it?’’

Positioning the product. The decision regarding what you want

your product to be known and used for is one of the most important in its suc¬
cess. In one of its own house ads, Ogilvy & Mather, advertising agency, had
this to say on the subject:

The most important decision you will ever make about your advertis¬
ing is: "How should I position my product?”
Should you position Good Seasons Salad Dressing as a gourmet’s de¬
light, for people who appreciate its subtle blend of herbs and spices?
Or as a product which competes with bottled salad dressings?

1 Guy M. Minard, "Business and the Consumer: A Value Gap,’’ from The Presi¬
dents Forum, Winter 1971, published by The Presidents Association. Reprinted by Kimberly-
Clark Corporation. Neenah, Wise.
2 Advertising Age, July 31, 1972, p. 2.
 534 Should you position Shake’n Bake as a new flavor for chicken? Or as
The an easier way to get old-fashioned "fried-chicken” taste?
Advertising
Campaign The results of your advertising will depend less on how it is written
than on how it is positioned. It follows that the positioning must be
decided before the advertising is created.
We positioned Hershey’s oldest product, Hershey’s Milk Chocolate
Bar, as the market leader. Familiar, warm, friendly, "the great Ameri¬
can chocolate bar.”
We positioned Hershey’s newest product, their new Rally Bar, as "the
Hershey-covered hunger-stopper.” 3

Not all advertising men agree that positioning is the most important
element in the success of a product, but none would deny that it is one of the
most important of these elements.

What’s the differential? We appraise the product from the view¬

point of the user. What is its reason for existence as far as the consumer is
concerned? Why should he buy it? What values does it offer that other
products are not already offering? What is its unique advantage? How im¬
portant is that point of difference in enabling the product to serve better the
purpose for which a person would buy it?
Not only should the product have a significant differential, but that
feature should be conspicuous, or lend itself to demonstration or dramatiza¬
tion. One of the reasons we don’t see more brand advertising of salt is that
few companies have succeeded in establishing a differential, as has Morton s
salt, with its ability to flow freely in wet weather.
The Ralston Purina Company went into the frozen-food business,
on which they had built up a volume of $9 million, but were losing money,
so they gave it up. In reporting on this, the Gallagher Report said, "Marketing
Me-Tooism Invites Disaster. Lack of product originality reason for failure of
Ralston Purina venture into frozen foods.” 4
Edgar Griswold, Hunt-Wesson’s new products director, said, in dis¬
cussing Hunt-Wesson’s new product development, that

(1) Only products substantially different from existing ones would be

introduced, (2) substantial value must be added (the new item should
not resemble the raw commodity from which it was derived), (3) it
must be different enough so that consumers would not mistake it for
another brand, and (4) recognizing the shortened life cycle, dollars
invested should be returned within a year.5

3 Advertisement in Advertising Age, July 10, 1972, p. 9.

AThe Gallagher Report, June 8, 1972, p. 2.
5 Based on a paper for Conference Board, New York, October 1972, by Edward M.
Krakauer, Vice President of Consumer Marketing, Hunt-Wesson Foods, Inc., read by Edgar
Griswold. Advertising Age, October 16, 1972, p. 3.
 The costliest form of advertising is that in which the producer ex¬ 535
The Complete
pects the uniqueness of the advertising to make up for the lack of uniqueness Campaign
in the product. If a proposed new product does not represent a significant,
demonstrable differential, management might better be advised to put its ad¬
vertising money into product research and development.

The Trademark and the Package

The first step in grooming a product for marketing to the consumer is to give
it a trademark. It should meet the requirements previously discussed (Chapter
20)—that it be distinctive, short, simple, easy to pronounce, and that it meet
all legal requirements for registering, including those of not being descriptive,
confusingly like other trademarks, nor deceptive.
Is the product to be trademarked one of a family of existing products,
or is it to be the beginning of a family of products? That may affect its choice.
Likewise, we ask if the package is to be one of a family of packages.
Are its sizes right to meet the demands of the market, with possibly a size
for the "singles” buyer? Does it take advantage of the latest technology in the
field? Does it represent a pollution problem? Is it important to feature the
house name in addition to the trademark? Does it contain all the mandatory
information called for by the law? The package design must meet the com¬
petition of other products in its class. It can be pretested before making a
final selection, to see how it compares with the packages of competition, and
to see also how various designs compare with each other, to select the best
one.

Pricing the Product

There are many elements that go into setting a price. If this represents a new
type of product in the pioneering stage, there is no base for price comparison.
It could well be on the high side if it is really unique. The task is to establish
the product quickly, before imitators and other competitors move in. Products
in the competitive stage usually move into established price ranges for goods
of that type and quality.

In What Stage Is the Product?

If the product is a new type of product in the pioneering stage, how large
is the potential sale for it? How much educational work will have to be
done to create interest in this kind of product? How much in sales will be
needed to defray developmental costs? Can the product be protected by patents
in order to prevent competitors from quickly moving in (which they will do
as soon as the product shows signs of success)? If not, does the company
 336 have sufficient resources to move swiftly in order to get distribution and es¬
The
tablish the product before competition gets going?
Advertising
Campaign Lestoil was a new-formula cleaning product that was introduced by a
small company in New England, where it proved very effective and successful,
overtaking many established cleansers. The plan was to do a thorough mer¬
chandising job in New England and move into other markets. When Lestoil
was ready to enter other markets, they found that other preparations like Les¬
toil, produced by well-known companies, were already there, and dealers had
no interest in Lestoil, which was not then known in those markets.
If the product is in the competitive stage, does it fit into a category
that can support a profitable market? What is the total volume of business
being done at this time? Is it growing or waning? How many competitors are
there, and how strong are they? What are their weaknesses? In some fields, a
few companies do most of the business, and a large list of others scramble
for the rest. Would this be one of those fields? What share of the market
would one hope to get? Is there some idea or plan that would make it possible
for a newcomer to make a place for himself despite the priority and the ad¬
vertising of others?

Selecting the Target Market

Is there any part of the country that especially favors this type of product?
Is there any overlooked ethnic group that might offer opportunities for market¬
ing efforts? Who buys the product? Men, women, or children? Who makes
the decision to buy in a household? What are their significant demographic
characteristics? Is it sex? Age? Income level? Home ownership? Or what do
these prospects have in common that would enable one to identify them as a
group? In addition to considering buyers in general, it may be desirable to aim
for the heavy users of the product. If so, the message and the medium can be
focused on a specific audience. Cereal manufacturers love homes with lots of
children; soft-drink manufacturers love homes with high school teenagers.

Eiow Is the Product to be Distributed?

Will it be sold through the usual retail trade channels, or will it be by exclu¬
sive distributorships, or house-to-house salesmen? In the first case, the adver¬
tising will be designed to get people to go to any dealer for the product, as
is the case for most nationally advertised goods. In the second case, the ad¬
vertising may be focused on encouraging the prospect to go to the distributor s
showroom for demonstration (as in the case of a car), or getting in direct
touch with him otherwise. If it is to be sold at home by a salesman, as in the
case of encyclopedias, it may call for direct-response advertising to get leads.
What Is the Seasonal Factor? J>37
The Complete
Campaign
Are sales affected by the season, as with sunburn preparations, for example?
Then the schedule can begin in the South in the winter, and move to the North.
Or anti-freeze, for another example; this might start in the North and move
south. Soft drinks sell all year round, but the peak sales are in the summer.
Advertising schedules for seasonal products usually begin before the advent
of the season.

What Shall be the Creative Strategy and Theme?

In a broad sense, we know that if a product is a new type of article in the

pioneering stage, we will have to stress the great advantage now available
that was never available in any form before. We will have to help people
convince themselves that this product really works, with stress on seeing a
demonstration or on a trial offer.

This Bulova Oceanographer runs under 333 feet of water.

For the man who dares the depths.
Even if your normal depth is 12 inches. At your depth, our Oceanographer And the luminous dial will still be giving
you gel a reassuring margin of safety won’t even know it’s under water. you the right time that night,
when your watch is tested to keep out But suppose you get out of your depth That’s another reason for owning this
moisture 333 feet down. At that depth, and go coral diving some day? extraordinary watch:
Featuring a the water presses on every square inch The Oceanographer will automatically You never know when you’ll have an
of watch surface with a weight of 144 lbs. tell you what that day is. And its date. extraordinary day.
Competitive Bulova.These days the right time isn’t enough.
Oceanographer "Q." $95 Other Oceanographer watches from $55 Available at fine jewelry and department stores. Bulova Watch Company. Inc
Advantage

The problem here was

quickly to impress the
differential of this watch
—its ability to run even
in deep water. Good
thinking began with
the naming of the
watch. The headline
is specific—not "deep
water” but under 333
feet of water.” The
headline is selective—
"For the Man who
Dares the Depths.” The
visualization is arrest¬
ing and simple, immedi¬
ately telling that this
watch is meant to be in
the water.
 538 If the product is in the competitive stage, we will seek the chief dis¬
The tinctive advantage that this product offers that the other products do not have.
Werbung
Campaign We look for that advantage that is of significant service to the user; we seek to
present it as dramatically and conspicuously as we can, only making sure that
when a person buys a product it will make good on our claim.
If a product attains a top-of-market share and is in the retentive stage
where it is chiefly concerned with a holding action, we know it will have to
fight off brand substitutes (Coca-Cola, "It’s the real thing ; Lea & Perrins
sauce, "Many imitations, no substitutions"; Frigidaire refrigerators, "Not
every refrigerator is a Frigidaire"). But the real problem here is not to stand
still in that stage, not to rely on continued loyalty of your customers to your
product, but to go after new markets with new uses, or else to improve greatly
the product, or add more products to the line.

east® The top broils.

Moving Out of the
Retentive Stage

The middle "Hoover,” a household word for

vacuum cleaners, here presents a
new product to take advantage of
its reputation. It gives the frying
pan chief emphasis, and minor
selling space to the vacuum
cleaner. Note deft hook-up:
"Giving something extra is typi¬
cal of Hoover products."
Thke a good look at this Then, look at the Dial-A-Matic vacuum.
Hoover fry pan. warming tray in the It’s really two
Look at it three ways, bottom. That means you cleaners in one. An
Look at the broiler keep bacon, potatoes, upright for carpets, with
lid. With it, you can broil mushrooms, at perfect
-- our
---- famous beats-as-it-
steaks, chops and eating temperature while sweeps-as-it-cleans
hamburgers. Anywhere. you’re cooking the eggs, action. Flip a switch and
Including at the table. broiling the steak or it’s a canister for walls,
And the broiler unit is whatever. | drapes, furniture
removable when you don’t So, why settle for a or anything that’s
need it. fry pan that’s just a fry dusty.
Look at the deep pan? Of course, we
12" x 12" frying surface. The Hoover fry pan don’t always give you
Big enough does more than fry. A lot two or three
to cook a more. appliances in one.
roast. It’s ***, Giving you some- But we
completely - thing extra is typical of always try
immersible, Hoover products.
FT aa\ ror nmnnr»fc to give you more
too. For example, appliance for
the Hoover your money.

Hoover.
Helping you has made us
a household word.
 -539
Meeting Specific Selling Problems The Complete
Campaign
In addition to these broad problems that affect the product, depending upon
the stage in which it finds itself, it is reasonable to expect that every product
will have its own special selling problems, ranging from apathy to active
prejudice. We are now called upon to establish the specific strategy that will
get action despite, or perhaps because of, these obstacles. The following ex¬
amples might illustrate this facet of advertising thinking.

To increase the uses of a product. Here we come to a widely used

strategy for increasing sales for a product that is already well known. This
can be done by increasing the variety of uses of the product. Food advertisers
are constantly showing new recipes. A ScotTowel advertisement said,
"Nothing wraps up like a strong absorbent towel,” with suggestions for seven
different uses. Mothers are told why children and teenagers should have four
glasses of milk daily. The makers of Dixie cups designed a wall bracket for
their cups, to be installed in the bathroom, in order to keep colds caused by
the common family bathroom glass from spreading by having paper cups
accessible at all times.

To increase the quantity purchased. The unit of purchase may be

increased by offering larger-sized packages—frequently called gift size, family
size, economy size, or by some similar designation. (There is an FTC ruling
on size designations.) A package can also be made to hold several units of the
advertised product. Soft drinks and beer are offered in carrying cases of six
and eight bottles or cans. Golf balls are offered to you in a wrap of three, and
in a box of twelve. Packaging an assortment of related products is another
familiar method of increasing the sale of the items included, as in cereals.
Libby’s pictures an appetizing assortment of dishes prepared with a
dozen of their canned and frozen foods, in an advertisement urging women to
have a shelf full of Libby’s "to be ready for all occasions.”
A variant of the technique of increasing the quantity purchased was
the advertising of Band-Aid bandages, designed to increase the quantity
used, saying:

Protect your child a little longer with a Band-Aid adhesive bandage. It

heals better if it’s protected a little longer.

To increase length of buying season. Campbells Soups endeavored

to offset the summer slump in soups by saying, "Summer suppers are better
with one hot dish. Make it chicken vegetable soup.” The tea industry intro¬
duced an iced-tea mix to popularize tea as a summer drink as well as a winter
favorite, by making it easy to prepare. It was even offered as a diet drink for
those who didn’t want to increase their sugar intake.
 540 Turkey has long been a traditional favorite for the Thanksgiving-
The New Year holiday season. However, the turkey growers of California em¬
Werbung
Campaign barked on a campaign to make turkey an all-year favorite. "Make your summer
barbecue more fun,” said one of its advertisements, giving the specific direc¬
tions of a "patio chef” for barbecuing the turkey.
Advertising is indicated for lengthening the buying season of a
product when it can be stored, used, shipped, and otherwise enjoyed in a
season other than the customary one. If the business continues to be highly
seasonal despite efforts to straighten out the dip, it may be wise to expand the
line to include new products that are in season when the present product is
out of season.

To attract a younger generation. When the Bible reported, There

arose a new king over Egypt, which knew not Joseph, it spoke of a problem
that continually faces every business today. The popularity of a product can
decay as its present faithful customers die off, and as a new generation that
may not have the same respect for the name grows up. Accordingly, advertis¬
ing is often planned to make customers of the new generation that is ap¬
pearing on the buying scene.

A Smith-Corona can help

your teenager through school.
How many other Christmas gifts
can say that? Going after New Generation
Forget the surfboards, skis, and as fast as he can wing them.)
cute little tv sets. Because right now And a quiet little miracle called
your teenager is bucking the toughest, Organization occurs. Typewriters are in the competitive stage
most competitive schooling ever. A Smith-Corona can make a for office use, but Smith Corona decided
And a Smith-Corona’ Electric difference to your teenager. We know
Portable can help. because we’ve already helped quite to go after a new generation—teenagers—
Give him one and he can learn to a few — 4 out of every 5 electric port¬
with pioneering advertising addressed to
type twice as fast as writing by hand. ables in America are Smith-Corona.
His spelling can improve. (A Frankly, a Smith-Corona isn’t parents. And when parents decide to give
typed word that’s misspelled stands a gift that’ll help a student have fun.
out like a flare.) It’s simply a gift that’ll help.
a typewriter, the chances are good that
His creative thinking gets Smith Corona will be their first choice.
nudged. (A typewriter takes ideas SSBv SMITH CORONA MARCH ANT
 "Younger generation” is a comparative term. The distributors of 341
The Complete
Dewar’s Scotch whisky realized that its reputation and high price had made Campaign
it a long-time favorite among men who were now middle-aged. They pre¬
pared a special campaign addressed to those in their late twenties and early
thirties—to them, the "younger generation. ’ They ran campaigns to both
audiences at the same time in different magazines.

To feature a promotional idea. Among the areas of thinking that

are always available is that of a promotional idea—a premium offer, a contest,
a cents-off coupon offer, a sampling campaign. This way of thinking is oppor¬
tune when it is desired to give the product an intensive sales push, or to meet
the promotion of a competitor.

If you have trouble feeding your family on your budget,

will you kindly allow Hunt-Wesson’s computer to do it for you.
We understand how tough it is to plan good, lems. It'll take a good look at all of the infor¬ family. So write us now. Our free offer ex¬
nourishing meals within your budget when mation you send us so we can send out free pires on October 31, 1970, and we wouldn't
food costs are high. Don’t give up. We're a whole month of menu ideas planned just want you to miss out on a good thing.
for you. Remember. We may not be able to solve
going to help you make it.
We'll tell you what to make and how to all your food problems, but we're sure going
Just fill out the coupon. You see, we've
hired a computer just to work on your prob¬ make it. We’ll send you all kinds of shopping to give it a try.
and cooking tips that should stretch your
food dollar. Each day’s meals will be nutri¬
tionally balanced. And we’ll try to make
allowances for snacks and other personal
A Campaign Built Around considerations. Most important, this will be
done within your food budget. Just for your

a Promotional Idea

Sometimes you look outside

your product for a service you
can render, such as offering
free a whole month of menu
ideas and recipes, computer¬
ized for the individual family,
based on its size and the fam¬
ily income. Over 1,300,000
requests were received. The
total sales effect was a great
sales boost for the entire
Hunt-Wesson line.*
PLEASE SEND COUPON TO
Hunt Wesson Foods. Computer Meal Planning Center: P.0 Box 1368, Dayton. Ohio 45401
l‘d love to receive a whole month of menu ideas, recipes and tips planned free just for my family.

MY FAMILY AGE GROUPS ARE: MY WEEKLY FOOD BUDGET IS:

(Please put correct number for (Please check one and exclude liquor, cigarettes, laundry products,
each applicable group.) toiletries, pet food and other non-food items
Number of: from your total.)
_Adults □ Under $20 Week
Children 2-5 Years Old □ $20 to $30 Week
Children 6-9 Years Old □ $30 to $40 Week
Children 10-14 Years Old □ $40 to $50 Week
Children 15-18 Years Old I Over $50 Week
(Over IS is considered oduil)

Hunt-Wesson. We ll help you make it.

And to get you started,

here is a valuable store coupon, good on
the purchase of one of our products.
To Grocer. You aro authorized to act as our ogont tor tho redemption ol this coupon. Coupon
is good on any slzo ot Pride of tho Farm Catsup only. We will reimburse you tho toco value
ot this coupon plus 3« for handling If It has been used in nccordanco with our cuolomor oftor.
Invoice proving purchase ot sullicionl stock to cover coupons presented lor redomptio/i must
bo shown on roquost. Coupon is void where taxod, prohibited or otherwise restricted by low
Customor pays any solos tax. Cash vnluo 1/20*. Grocers mail coupons to Hunt-Wesson Foods,
P.O. Box 1470, Clinton. Iowa 52732. Coupon oxplros In 60 days,

* Source: Direct communication

from advertiser. Pride of the Farm Catsup 5<t
 542 To secure acceptance of a subordinate product or process; to reach
The
the end user. Campaigns are often addressed to the consumer by the manu¬
Werbung
Campaign facturer who makes the raw material used in the finished product that the
consumer buys.
Celanese is a fiber made by Fiber Industries, Inc., who make the fiber
into cloth and sell the cloth to dress manufacturers, who sell their dresses to
retail stores, who sell their dresses to their customers—the end users. Fiber
Industries convinced eighteen garment manufacturers to make clothes of
Celanese, and had each manufacturer send them his best style. Then they ran
a triple-page (gatefold) magazine advertisement showing each of these styles
with the manufacturer’s name and listing the stores in the various cities
throughout the country where the styles were sold. All this resulted in their
selling Celanese to the dress manufacturers, who sold more dresses because
of that total advertising effort.

Movies without
movie lights. Product News Provides
Campaign Idea

You don’t have to look far for a

Four things Kodak campaign theme when an improve¬
ment in a product is as noteworthy
did to make them possible: as this. Observe clear promise head¬
Kodak has built four special features into the XL movie cameras
line: concise, specific copy.
that let in up to 6 times as much light as cameras without these features:
one. An extra-fast f/X2 Ektar lens. two. An enlarged shutter opening
that lets in extra light, three. A special exposure control that doesn’t
block the light, four. A viewing system that doesn’t steal the light.
Just drop in a cartridge of high-speed Kodak Ektachrome 160 movie
film and you’re ready for
movies without movie
lights. This film is four
times faster than
Kodachrome II movie film.
See the Kodak XL
movie cameras at your
photo dealer’s. From less
than $120. The XL55
(shown) with power zoom
is less than $215.
Prices subject to change without notice.

Kodak XL
movie cameras.
Ektachrome 160
movie film.
 To create ffmerchandising packages” of a variety of services. To in¬ 543
crease flights on their planes, airlines advertise entire "packaged tours," in¬ The Complete
Campaign
cluding plane fare, hotel accommodations, meals, and sightseeing, to various
parts of the world, for varying lengths of stay, all for a set price (except extras,
of course). This strategy of making your product part of something bigger,
offered as a unit, is particularly good in the service field.

To turn a disadvantage into an advantage. A classic example of the

triumph of capitalizing on a disadvantage was shown some years ago in the
drive-yourself car field, in which Hertz dominated at the time, followed at
a distance by a lot of -smaller companies. Among them was Avis, which
ranked second to Hertz. "We are Number Two," they said proudly, "we have
to try harder. And their "We try harder" slogan was quickly picked up as a
plausible reason for expecting better service, eliciting a warm response from
those who also were trying hard to get ahead. By positioning themselves as
Number Two, they pulled their image way above the host of other drive-
yourself companies in the field.

The situations cited above are just a handful of examples to present

the thinking about advertising campaigns in terms of strategy.

Creating the Advertisements and Commercials

Up to now we have been discussing what to say. Now we deal with how
to say it. To summarize all that was said on the subject in the discussion
of creating advertisements: Have sharply in mind what you want to com¬
municate; then say it in as fresh, interesting, and clear a way as you can. Try
at least three different ways of doing this before you select the one to use.
In the case of TV and radio commercials, begin with the ending, and let your
imagination loose on how to get there.

Selecting the Media

He who deals with media deals with money. He allocates funds to different
media in different proportions. His decisions determine the number of
messages that will be delivered per dollar, to whom, and how often; his
judgment directly affects the cost/profit ratio of a marketing program.
There is great opportunity for creative and courageous media selec¬
tion, not always following the crowd in choice of media, use of space or time,
and timing. There is also great variability in what a media man can get for
his dollars in the purchase of time and space.
 344 Getting the Budget and Campaign Approved
The
Advertising In presentation of an advertising proposal to top management for approval,
Campaign
it has been found wise to set out with a statement of the company’s mar¬
keting goals. They may be to launch a new product, to increase sales by X
percent, to increase its share of the market by Z percent—or whatever the
marketing target may be. Next follows a description of the philosophy and
strategy of the advertising, with the reasons for believing that the proposed
plan will help attain those objectives. Not until then are the advertisements
or the commercials presented, along with the media proposal and the plans
for coordinating the entire effort with that of the sales department. What are
the reasons for each recommendation in the program? On what basis were
these dollar figures arrived at? On what research were any decisions based?
What were the results of preliminary tests, if any? What is competition doing?
What alternatives were considered? What is the total cost? And finally, how
may the entire program help contribute to the company’s return on its invest¬
ment? These questions are the kind that those who control the corporate
purse strings like to have answered when they are asked to approve a total
advertising program.

Preparing and Scheduling the Advertising

Once the budget and campaign are approved, we come to the task of actu¬
ally producing the advertisements and the commercials, and all the trade
promotional material, and buying the space and time. The biggest problem
at this juncture of the effort is invariably coordination and timing, and these
call for good advance planning.

Presenting the Campaign to the Sales Force

The sales force always looks forward to the annual announcement of the
company’s newest plans and may gather for the event at a convention-like
meeting at the home or branch office. There, everything may be set up on
a stage under wraps, with all the excitement characteristic of the launching
of a new venture; finally, the new product and the new advertising campaign
are unfurled to view.
Sometimes the launching of a new campaign is done with the aid of
a closed-circuit television presentation from the home office to the different
branch-office meetings, to which the dealers might be invited. At other times,
the men are all brought in, along with the main distributors, and given a
theatrical presentation with music—as with the automobile companies and
makers of household utilities. Or it can all be done on a modest scale; the men
are called in to the sales manager’s office, and the advertising manager tells
of the advertising program.
 Usually a kit of the various advertising material will be prepared, with 545
which the salesmen are able to show all the details of the hew campaign to the U <romplete
dealers on whom they will call.

Appraising the Results

The Big Day comes! The campaign is released. The advertising is released.
The tension of getting up the campaign is released ... but not for long.
Soon the question comes up, How are we doing ? ’ For this purpose we
have available a variety of appraisal plans. The chief lesson to be derived
from all appraisal efforts is this: before spending any money on advertising,
lay down the ground rules as to exactly what the advertising is supposed to
accomplish, make sure these goals are reasonable, then test the results against
that bench mark.

Summary of the Steps

The steps in preparing an actual national campaign for a consumer product

may be outlined in the following manner. (The sequence does not follow the
previous discussion exactly, but has been rearranged for convenience in sur¬
veying the entire problem.)

1. Develop a product that offers good value.

2. Create the trademark.
3. Design the package.
4. Determine who can use it. Where are they? What are they like?
Who are the heavy users?
5. Position the product.
6. Determine the selling price.
7. Determine the method of distribution.
8. Establish the advertising strategy and theme.
9. Set the appropriation; get it approved.
10. Prepare the advertisements and commercials.
11. Choose the media; prepare schedules; order the time and space.
12. Create the dealer tie-in plan.
13. Present the complete campaign to the salesmen and distributors.
14. Release the advertising to the public.
15. Appraise the results.
 546
The
Werbung
Campaign

Fitting the Image to the Times

Northwestern Mutual Life Insurance Company

A case report on a complete campaign

In 1971, the Northwestern Mutual Life Insurance Company undertook a

complete reappraisal of its advertising program. The company, seventh
largest life insurance firm in the country, wanted to examine not only the
specifics of its advertising program (target audiences, media, message strategy,
and the like), but also general questions such as why the company should
advertise at all, and what its advertising goals should be.

Background

Over recent years, Northwestern’s advertising apparently had not generated

the identity that company executives considered appropriate for the seventh
largest life insurance company. More specifically, the 1970 Gallup National
Insurance Index survey showed that NML ranked 34th in awareness (of 55
major life insurance companies studied). Moreover, although policyowners
held strong positive reactions to the company, to /^-policyowners the com¬
pany was "something of an unknown.” In addition, there was some executive
dissatisfaction with recent campaigns.
Traditionally, NML’s advertising sought to develop a quality image
for the company, with the aim of preselling the company s name and values.
It had been recognized that the actual selling of policies was not a realistic
objective for the company’s advertising.
The company’s past advertising had been aimed at ' prime prospects
—upper-income, well-educated men, initially those in the 35—45 age bracket,
later 25-45. News weeklies, later supplemented by Sports Illustrated (for
younger men), had been the national media; magazines—and news magazines
particularly—were chosen because of their ability to reach the desired audi¬
ences efficiently and to establish frequency within a limited budget.
The most successful past campaign had been the 20-year "Karsh
campaign,” which featured quality people in the ads with a distinguished ap¬
pearance of the ads themselves. This campaign was seen as very merchan-
disable” by the field force. But times changed, and the Karsh campaigns

Courtesy of Northwestern Mutual Life Insurance Company, Richard S. Haggman,

Superintendent of Advertising.
emphasis on older business figures as authorities may well have been "out of 347
joint with the tenor of the late 1960 s. The 'faces’ and "individuals’’ cam¬ The Complete
Campaign
paigns followed, also illustrated here; neither of these generated agent en¬
thusiasm. On three measures of reactions to advertising—ad readership scores,
public identification of the company, and agent enthusiasm—none of the
campaigns scored high on all three.

Northwestern Mutual Life policyowner for 38 years. Mr. Oelman today has eleven policies with NML.

ROBERT S. OELMAN, Chairman and Chief Executive Officer, The National Cash Register Company, Dayton, Ohio

“Don't ignore the asset value

life insurance offers you."
"Everyone recognizes the protection value of life insurance. does more for you at Northwestern Mutual Life —NML.
It's so dramatic, in fact, that many people don't give atten¬ Cash values grow fast. The dividend rate has gone up
tion to another big advantage—the dollar reserves life steadily: 13 times in 16 years. □ NML operating expenses
insurance creates. □ To my mind, its ever¬ are low. They run about one-third less, as
growing cash values are a vital family asset. a percentage of premiums, than the average
They're basic to security planning ... a
solid base for financial well-being. A ready
source of help for emergencies, education,
retirement—you name it." □ Your money
NML of the 14 other largest life insurance
companies. Ask the NML agent for the
full story. It can pay you. Northwestern
Mutual Life—Milwaukee.

21-900 (68-4) This statement and photograph appeared in an advertisement. Those who appear in
the program do so voluntarily and in the public interest and receive no remuneration.

One of the Famous "Karsh” Portrait Series that Ran for 20 Years
 348 Role of Advertising at Northwestern
The
Advertising An exploration with company and advertising agency people of the question,
Campaign
"What is advertising supposed to do for the company?" revealed several
major roles for NML’s advertising. First, particularly from those associated
with the field selling effort, advertising is seen as a sales support, a door-
opener, a preselling tool that sets the stage for a more favorable reception
for the agent. Related to this is a second major role—namely, to instill a
favorable image for the company among its selective prospect groups. A third
is to reinforce "warm feelings” on the part of present owners. From these
(especially the first two), and also from the level of spending, emerges a
fourth role—to sustain and improve the morale of the agents.
No one, however, claimed a direct selling role for advertising. Perhaps
for this reason, advertising was called into question by some as possibly a
waste of resources. Yet a number of arguments were put forth as to why it
was important to advertise:

—Because competitors do it
—Because NML is a major national firm in a major industry
—Because agents like it (especially when they like the ads)
—Because it’s an efficient way to communicate the company’s favorable
characteristics to many prospects simultaneously
—Because we don’t know what would happen if we stopped

At this point, the company’s focus shifted to what it saw as a more

meaningful question: "How can we maximize the usefulness of our adver¬
tising program?" An attempt was made to articulate the shorter- and longer-
term roles of advertising on prospects and on current owners, and also on
agents. Some of these impacts were more sales-oriented than others. In chart
form, these shorter- and longer-term impacts were stated as:

Impacts

Group Short-term Longer-term

Prospects Door-opener via name identifica¬ Same, with increasing

tion and favorable image image favorability (Spe¬
(Awareness is achievable in short cific attributes take longer
to medium term) to “build” than does
awareness)

Current owners Reinforce feeling of “right” de¬ Retain pride of ownership

cision and strengthen pride of and enhance likelihood of
ownership purchase of more insur¬
Reach those current owners not ance and other products
similar to “prime” prospects from NML; advertising
(among “target audiences”) supplements experience

Agents Merchandisability; morale uplift Same, plus make it easier

to recruit new agents
 Company Identity and Image 549
The Complete
Campaign
Consumer research had shown that Northwestern’s name was not recognized,
nor was the company distinctively identified (commensurate with size and
performance), by consumers in its prospect group. Among policyholders
themselves, the company was seen clearly and favorably; indeed, group inter¬
views with policyowners reaffirmed the view of company executives and data
from past policyowner studies that policyowners were enthusiastic about the
company. But among groups of non-policyholders who were demographically
equivalent to the owners’ group, NML was "something of an unknown.’’
More specifically, among non-policyowners, recall of NML advertising was
low, and believability of the identifying sentence, "World’s largest company
specializing in individual life insurance,’’ was not only low, but was resisted.
In the absence of knowledge of the company, this claim was incomprehensible,
and the non-owner’s intellectual resolution was to refuse to believe it could
be true.
In trying to define for itself the company’s distinctive characteristics,
executives sought to find unique, real differentiating elements not being em¬
phasized by other insurance companies. This, in short, would provide an
identity for NML both supportable and preemptible (vs. competition).
In fact, company executives believed that superior performance was a
documentable, unique attribute, using traditional industry-wide criteria. Their
hope was, first, that a meaningful "translation’’ of this superiority could be
developed—meaningful to policyowners and non-owners. Second, they hoped
a distinctive creative execution of the theme could be developed.

Target Audiences

The principal group to whom the company’s advertising had been addressed
was prospective buyers. These were further defined into "prime prospects”—
well-educated men, 21-35, in upper and middle social classes and in occupa¬
tions similar to those of present policyowners. (This represents only about 5
percent of the public.) It was agreed that prospective- and present-owner
publics were the most salient audiences for advertising, and that a successful
job with these groups would lead the agents to react very favorably too. For¬
tunately also, there is considerable overlap, in terms of national media, in
reaching prospective- and present-owner audiences, since the demographic
characteristics of the former have been defined largely in terms of the latter.
Several basic questions were raised about target audiences: Within
the prospect group, were there subgroups to whom more emphasis should
be given? Was there more about the non-demographic aspects of prospects
that might help communicate to them? Was enough being done to reinforce
the company’s image with present owners? Were there additional audiences
to whom advertising should be aimed?
 330 The company concluded that:
The
Advertising
Campaign —Greater relative emphasis than in the past be put on reaching pros¬
pects not among the "primes,” since the field force focused al¬
most entirely on the primes.
—More work be done to get insights into the qualitative nature of
prospects (within the key demographic groups).

Communicating Identity and Image (Message)

In exploring (not deciding) specific directions for the content of a new

campaign, executives considered several background elements, based on re¬
search and impressions:

—Life insurance advertising still focuses in large part on the need for
life insurance and on selling achievements of agents; yet con¬
sumer research (including the Yankelovich industry study) indi¬
cates that most consumers seem to recognize the need for in¬
surance, and that they feel "threatened” by really good salesmen.
—In the context of the 1970’s, consumers want to feel that they are
capable of being good judges of, and wise buyers of, insurance;
buying insurance is one of the important financial commitments
that today’s consumer wants to make on what he sees as rational
grounds.
—There are clear emotional connotations of insurance (e.g., "care of
loved ones”), but the buying decision is seen as one involving
careful consideration (compared with buying a brand of canned
peas).

The implications for insurance advertising were seen as pointing to

advertising that should include objective, rational criteria on which a con¬
sumer can confidently base a buying decision for insurance (for example,
performance appraisal criteria). Further, consumers seem to want informa¬
tion that removes, or reduces, the "mystery” from assessing life insurance.
And consumers are also likely to seek reassurance that they are making—or
have recently made—a good decision.
Thus, research for the new campaign was to focus on how to com¬
municate—believably and meaningfully—what constitutes excellence, how
to recognize it, and that Northwestern has it. The company thought there was
believable and meaningful evidence of superiority in terms of such traditional
industry criteria as low lapse rate and high repeat-purchase rate (indications
of consumer satisfaction), favorable mortality experience (arising from
NML’s practice of accepting only "selected risks”), high investment return,
 and low operating cost. Northwestern’s "family” relationships with its policy¬ 551
owners was considered by executives an additional positive element for pros¬ The Complete
Campaign
pective use in developing the campaign. However, they recognized the need
to have prior consumer assessment of both the content and execution of spe¬
cific proposed advertising messages. Such research would be carried out with
policyowners and non-owners, since each group is an important audience for
the advertising; each was thought to have a rather different perspective on the
company.

Reaching the Target Audiences (Media)

NML had traditionally emphasized magazines in its media plan. This was
viewed as making excellent sense, in the light of the positive attributes of
magazines for insurance advertising. (Competition uses magazines heavily
also.)
The principal arguments for the kinds of magazines NML has used
are as follows:

—Selectivity (efficiency of ad spending directed to NML’s traditional

demographic targets)
—Continuity (sustaining the message, given the total budget dollars)
—Susceptibility to a story (permitting a longer message for the reader
to chew on)
—Basically serious mood (and the resultant setting for a serious mes¬
sage)
—Merc loan disability (via reprints)

Two major questions about magazine advertising at this point are

these: First, is it a "tired medium” for NML’s communication with its target
audience (s); that is, is there a certain sameness that will affect any new mes¬
sage? Second, since some competitors are in television, is there a need for NML
to play the glamor game” too? Are there specific advantages in TV for NML?
On the first point, executives agreed that a meaningfully different (in
the consumer’s own view) message could overcome any sameness in the
medium. But in the second area, the arguments were more complex. On the
one hand, the dramatic impact of TV, its creative possibilities, its presumed
morale impact on the agents (and executives) as an "active medium,” and its
use by some competitors made its serious consideration necessary. Counter¬
balancing these, there were several major arguments against TV:

—Its low efficiency in reaching NML’s traditional target demographic

groups
 552 —The high "start-up” cost of achieving the meaningful frequency
The in TV necessary for visibility (probably $1.5 million or more)
Werbung
Campaign —The need for a "pool” of several commercials, the production cost
of which is likely to be over $100,000
—The need for some "maintenance budget” in print (which would
add to the total budget)

The agreement was that TV should be undertaken if a sufficiently

dramatic and creative use of the medium could be developed, if a "creative”
TV media buy (such as news or special events) could markedly reduce the
inherent inefficiencies of the medium in reaching target audiences, and if
executives were excited enough about the campaign to be willing to make a
major additional budget investment in the initial year’s program.

Advertising Spending Levels

What more, if any, should the company spend on advertising?

NML’s 1971 (national) advertising outlay of some $800,000 repre¬
sented about double the expenditure of ten years before. However, advertising
dollars as a percentage of total premium income had increased only marginally
in ten years. On the other hand, compared with competition, on the basis of
advertising per total premium income, NML underspent by several hundred
thousand dollars the estimated national media budget of other major mutual
companies, and most other life insurance companies as well. Executives saw
a need to increase the budget if a new and exciting campaign were developed,
in order to "spend enough to be visible,” to achieve some critical mass of ad¬
vertising spending in order to make any meaningful impact. This would be
particularly relevant for TV: To get into TV at all was not seen as desirable
unless one were willing to spend well over $1 million in the medium. They
agreed to consider increasing NML’s "basic” level of national advertising
spending by $250,000 or so, closer to the proportionate level of major mutual
companies, and to make a major additional advertising investment of up to
$500,000 for a one-year or two-year period for an "exciting” campaign, espe¬
cially if it called for the use of TV. A modest reduction in present spending
while a new campaign was being developed would help support the added
budget later.

Developing the New Campaign

After the company and agency executives had completed their review of past
and present advertising, they moved forward to try to develop a new adver¬
tising campaign. In the course of their work on the advertising content, the
unusual media opportunity arose—namely, partial television sponsorship of 553
the 1972 Summer Olympics. Although expensive (over a million dollars), the rhe ComPlete
TV Olympic sponsorship would provide an exciting setting for the new cam- ^ ^
paign. It also measured up well on reaching the target demographic groups,
particularly the non-prime prospects whom the company wanted to reach
through its advertising. Finally, the Olympic sponsorship was seen as highly
exciting and merchandisable to and by the agents. Thus, the decision was made
to go into TV with the Olympics.
At this point, work continued on the campaign itself. Using the inter¬
view information from policyowner and non-owner groups, seven major
themes were developed by Northwestern’s advertising agency, the Chicago
office of J. Walter Thompson Company.

1. Theme: We Recognize Your Money Is Precious to You

Expressions
Because You ve Got More to Do With Your Money Than Just
Buy Life Insurance
We Make Life Insurance a Little Easier to Live With
Why Put More Money into Life Insurance Than You Really
Have To?
Isn t It Nice to Get a Little More Than You Pay For?
We Treat Your Money like It’s Still Your Money. Because It Is.
2. Theme: We Recognize Your Time Is Precious to You
Expressions
Invest Your Time as Wisely as You Invest Your Money
A Visit From a Life Insurance Agent Doesn’t Have to Be like a
Visit from Your Mother-In-Law
3. Theme: We Are 100 Years Old, The 7th Largest Life Insurance
Company, but Only the 34th Best Known
Expressions
Not the Best Known . . . Just The Best
The Great Unknown
The Best-Known Company You Never Heard Of
Northwestern Mutual Life. It’s Time You Heard About Us
4. Theme: Service to You as an Individual
Expressions
The Personal Life
It’s Your Life. It’s Your Company.
We’re Different Because You Are
5. Theme: Creative Living
Expressions
Insure as Creatively as You Live
Creating a Better Life Through Insurance
The Good Life
 554 6. Theme: We Recognize That You Are Unsure of Your Own Com¬
The
petence as a Life Insurance Buyer
Werbung
Campaign Expressions
After We Tell You What You Need to Know, You Tell Us What
You Need to Buy
The Less You Know About Life Insurance, the More You Need
Northwestern Mutual
People Making Life Insurance Work for People
We’ve Simplified the Business of Life
7. Theme: There Is a Difference in Life Insurance Companies
Expressions
Not All Life Insurance Companies Are Alike
If Anybody Can Change Your Mind About Life Insurance, It’s
Probably Us

Theme Testing

Among these themes, careful company and agency consideration selected 1,

3, and 6 for development into full-blown ads for consumer testing. Three ads
were prepared—and modified in order to "give the themes an even chance”
in further group interviews with policyowners and non-owners; all those
interviewed were in the demographic target groups.

The interviews yielded the following highlights:

1. Being a little-known company, NML needs to tell people who it

is before going into detail about what it has to offer. The "you never heard
of” theme works well. It sets a tone of modesty and humility, while credibly
communicating NML’s steadfast adherence to the rule of quality above quan¬
tity—since 1888, when everyone knows quality and pride in workmanship
really did exist. Given this prologue, the fact that NML is seventh largest
serves as proof positive that it really has put its customers first, and left it to
word of mouth to take care of growth. "Seventh largest” in the context of
this commercial says that service and strict adherence to quality have paid off,
and implies stability. Admission of the fact that NML is an unknown suggests
humility and integrity. The use of a little-known announcer will reinforce
the communication of straightforward integrity; if NML tried to borrow fame
from a well-known announcer, it would be regarded as dishonest.
2. People agree that life insurance is hard to buy, and they don’t
know the right way to go about it. People are willing to believe that NML
agents are equipped to help, but they still think the agent will strive to
maximize his commissions, and will only provide the information that suits
his purposes. There is considerable skepticism that the company actually has
control over its agents. Non-policyowners particularly question the idea of
agents being solely interested in the consumer’s interest. Dividend perfor¬ 533
The Complete
mance, stability, and flexibility are important things to know about, but deter¬
Campaign
mining the correct size and type of policy, and thus avoiding getting oversold,
is the central consumer problem in buying life insurance. Although some
people doubt that NML agents will produce as promised, they are willing to
give NML a try. The agent had really better deliver, because many say they
will be especially alert for any signs of pushiness or deception.
People have some trouble with the theme, "You have more to do
with your money.’’ Life insurance is not considered one of the best investments
or provisions you can make for the future. It may be one of the safest and most
necessary investments, but not the best.
"Efficient," in terms of just the right amount of coverage, is right on
target. As before, most people believe the agent will try to sell all the coverage
he can, but they seem willing to be shown that NML is different. ". . . just
the right amount of coverage. Not too much. Not too little. But based on
what you can honestly afford . . . today," works right at their central concern,
and does it very well.
3. "The best-known company you never heard of" seems to be an
effective identifying statement. It is important to have one.

The Media Schedule

It was decided to buy participation in the 1972 Olympics program on the

ABC National network for two weeks, from August 25 to September 11. The
schedule included 46 spots, both 30- and 60-second. Ten commercials were
used, telling the NML story along the lines that tested out best. The total
cost, including production, came close to $1,250,000.

Bench-mark Study

Along with the development work on the new campaign, the company also
planned a two-stage research study to help assess the impact of the campaign.
The research was to be conducted with a national sample of college-educated
men in the 20-40 age range. The questionnaire focused on awareness of vari¬
ous major insurance companies, preference (in terms of having a policy with
them or calling them if considering a policy), desirability of particular attri¬
butes of insurance companies (such as size, low expenses, and so on), recall
of advertising for various companies, and ratings of NML on particular at¬
tributes.
The same study was planned to be conducted both before the Olympics
and shortly after. In this way, the company thought it could assess the impact
of the Olympics campaign on its target group’s awareness of and attitudes
toward NML and the advertising.
 NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY
1972 SUMMER OLYMPICS
"Size Seven’’--One of Ten Commercials Produced for the Olympics

ft®

RAY: I was just down the street talking to Tom He pulled out about a hundred snapshots of him Hmmph ... you know it’s kind of funny how when
Armstrong about his new boy. and the little guy’s only six weeks old. a man has his first baby, he starts thinking about
the future and protection.

Anyway, Tom asked me if I’d recommend any life You know what he says to me? No, I was thinking Well, he looked puzzled. So I told him, “North¬
insurance companies. “Sure,” I said, “Northwestern of one of the big ones. So I came back with “Well, western Mutual is the seventh largest life insur¬
Mutual Life.” how does size seven feel, Tom!” ance company in America and it’s over a hundred
years old.”

Then he wants to know how come they're number They’ve been too busy making sure their life in¬ ANNCR: Northwestern Mutual Life ... The Quiet
seven and he never heard of them. So I tell him surance is the best around to spend much time Company . . . that people have been talking about
it’s simple. talking about it. for over 100 years.

Photoscript of a TV Commercial Stressing "The Quiet Company” Theme

The Actual Commercials 557
The Complete
Campaign
Working with the group-interview information, the agency’s creative group
continued its efforts to develop the TV commercials for the Olympics. One
aim was to come up with a strong "memory peg’’ for company identification.
The line that emerged was, "The quiet company people have been talking
about for over 100 years.’’ This line was seen as capitalizing on the company’s
longevity but indicating that the viewer might not have heard about NML.
The final commercials themselves continued to emphasize the non-
pushy nature of the NML agent, in a way that did not stretch the believability
of the viewer. The age, size, and stability of NML was underscored, as was
the company’s concern for selling the "right" amount of insurance for the
consumer.

Results

Initial reactions to the Olympics campaign were well beyond those

anticipated. Television audiences for the Olympics were substantially higher
than expected. Awareness of Northwestern immediately after the campaign
leaped from its previous low rankings to the level of other major insurance
companies. Recall of the commercials themselves was over twice the norm.
Correct association of "The Quiet Company" with Northwestern was well
above the level achieved by comparable advertising budgets of other adver¬
tisers. Northwestern Life’s agents were enthusiastic and a flood of favorable
mail came into the company from agents and policyholders alike.
 558
The
Werbung
Campaign

Bisquick
A case report on giving new life to an old product

This is the story of General Mills’ Bisquick—old and new—a story that em¬
braces 38 years of consumer packaged goods marketing experience with the
product. It’s the story of the rebirth and revitalization of a declining brand.

Background

Bisquick had originally been introduced as a biscuit mix in grocery stores on

the West Coast in 1934. Bisquick’s principal "reason for being” in this period
was its special formulation for biscuit baking; also, Bisquick included the
shortening in the box. The original Bisquick included flour, shortening, sugar,
salt, leavening, and dry milk in the package. Thus it offered biscuit-baking
convenience to consumers.
As the product’s acceptance grew and consumers’ experience with it
increased, Bisquick became a variety baking mix. This variety characteristic
was not a result of reformulation specifically designed for variety end-product
uses. Rather, it happened—as General Mills-Betty Crocker marketing execu¬
tives learned, and promoted the fact—that consumers were using the original
product for a variety of baking end products, principally biscuits, pancakes,
shortcakes, waffles, and dumplings.
Until the mid-1950’s, Bisquick’s annual volume continued to grow.
However, after it reached a peak in 1955, a decline set in. By 1965 its sales
had fallen substantially from the all-time high of 1955, although Bisquick
was still a profitable product for the company. The decline was viewed by
marketing executives as resulting principally from the entrance into the market
of more convenient specialty baking-mix items.

Product and Market Analysis Launched

In the face of this situation, the marketing organization of General Mills

initiated a thorough and complete product and market analysis of Bisquick.
This analysis began with the recognition that biscuits, pancakes, and short-

Courtesy General Mills, Inc., James S. Fish, Vice-president, Advertising and Market¬
ing Services.
cakes continued to be the mainstay baking items for which Bisquick was used. 339
The Complete
It also recognized that despite the volume generated by these end-product Campaign
bakings, little true homemade-biscuit-baking consumption was being pene¬
trated by Bisquick’s convenience mix. For instance, in the southern part of the
United States, where 70 percent of all biscuits are consumed, Bisquick had
virtually no penetration and did an insignificant proportion of its volume
relative to the biscuit market potential. Bisquick had been considered in 1965
the best of the variety baking mixes, but had never delivered a product that
the Southern housewife, in particular, found acceptable for basic biscuit
bakings.
The potential of penetrating the biscuit market with a reformulated
Bisquick product was so significant that considerable research effort was ex¬
pended in the South to determine what constituted a good Southern biscuit.
Key characteristics of good Southern biscuits were lightness, tenderness,
fluffiness, and moistness. With this information, and with considerable market-
potential and financial-implication data developed, General Mills’ product re¬
search was directed to develop a reformulated Bisquick product that would
provide the consumer with a superior-quality end-product biscuit—superior to
all other ways of making biscuits. This biscuit from Bisquick obviously would
have to be lighter, more tender, more fluffy, and more moist, with better
overall taste and texture than any other homemade-recipe biscuit could be.

Results in the South

In 1966, New Bisquick was launched into three Southern markets, in test, to
determine the viability of penetrating the Southern "scratch” market. The
reformulated product was viewed just as though it were one of General Mills’
new-product introductions. The Bisquick test-market experience in the South
was outstandingly successful: In its first full year in test, the product delivered
25 percent more volume than it had in the preceding (pretest) year. Further,
in the second year, an additional 18 percent volume increase was generated.
At that point, the overall results for the brand showed an increase of 45 per¬
cent in deliveries, 20 percent in consumer market share, and 42 percent in per
capita consumption of New Bisquick. There had also been a jump of 14 per¬
cent in sales of the entire product category, reflecting the fact that the "scratch”
part of the market had indeed been penetrated. Bisquick’s test had clearly
been successful, and on the strength of these results, the brand was rolled
into the entire southern United States.

Northern Expansion

The success of New Bisquick in the South raised the question to management
of whether New Bisquick should be introduced into the North. The old formu¬
lation’s brand situation in the North, although not similar to its former one
 You get a full fifteen cups of Betty Crocker’s package!) How else could you make so many good
most versatile mix in this new Family Size Bisquick. things so easily?
Enough to make all the good things shown above, Save time, trouble and money with new Family
from one box! (You don’t have to stop with these, Size Bisquick. It's not only thrifty but extra conven¬
either. Directions for many other tasty treats on the ient. Bigger size means less chance of running out!

The Old

This advertisement appeared in 1963, when Bisquick was featured

as a variety baking mix. Sales were going down, and the new size
package was introduced, but the sales still kept going down.

360
NOW A COMPLETELY NEW BISQUICK!
MAKES BISCUITS LIGHTER, FLUFFIER
HAN SCRATCH oryourmoneyback
New Bisquick Buttermilk Biscuit Mix is here. With 4) You gay no more than you’d gay for the best
four good reasons to stop making scratch biscuits: scratch biscuits.
1) You get a special, lighter flour stores don't sell You’ll say new Bisquick biscuits are lighter, fluf¬
So your biscuits turn out lighter than scratch, fier, better eating than your favorite scratch bis¬
2) You get a livelier leavening stores don’t sell. cuits. Or,your money back, if not completely satis¬
So your biscuits turn out fluffier than scratch. fied, mail box lop (with price mark) to General
3) You get an at most-instant formula far easier Mills, Inc., Sox 200, Minneapolis, Minn.
than scratch. Just add water and 3 minutes' P.S, New Bisquick also makes delicious pancakes,
fixing time. waffles, shortcake—and other favorite bakings.

Proved fighter than scratch

biscuits made at Athens,
Georgia,.. in actual weighings.

The New

This is not merely a new ad, but an announcement of a new formulation

of Bisquick, targeted to the home-made biscuit market, leading to the best
sales record the brand ever had.
 562 in the South, still reflected opportunity for growth, particularly in terms of
The
percentage of homes penetrated.
Werbung
Campaign Consumer-usage studies showed that pancake baking in the North was
considerably greater on an index basis than it was in the South. This end
product seemed to oflfer an excellent opportunity to improve volume in the
North for the New Bisquick ... if the product could perform. Again, ex¬
tensive research was done to confirm that New Bisquick made pancakes lighter
than the best "scratch” pancake recipes. With this confirmed, New Bisquick
was introduced into several Northern test markets in 1968.
The test-market program was similar to that employed in the South,
but with the advertising focused on the product’s superiority for pancakes.
The scale as symbol of New Bisquick’s superiority appeared in all promotion
and product support. Test results again were successful: New Bisquick’s vol¬
ume in the test markets grew 6 percent, against a goal of 5 percent. In view
of this success, New Bisquick was extended to full national distribution.

Retrospective

By the early 1970’s, it was clear that New Bisquick’s introduction, South and
North, had made a significant positive impact on volume. In 1971 and 1972,
the brand enjoyed its best years and is continuing to operate at high marketing
levels.
Three conclusions can be drawn with application to consumer
packaged-goods marketing:

1. Established products can be revitalized and reintroduced, given

sufficient market-research information and market analysis to iden¬
tify potential.
2. Thorough, defined market research and market testing can gen¬
erally be translatable to expansion-area business. While there are
always wiggles in the data, the general direction of market research
is translatable to expansion areas if the research reflects actual
test-market experience over time.
3. Marketing is an evolutionary process in terms of planning, not
static. This is demonstrated in Bisquick’s current volume-level
performance, four to five years after its initial reintroduction.
 Review Questions 363
The Complete
Campaign
1. What would be the chief technical company’s review and redevelopment
questions you would ask about a of its advertising. Based on this case:
new product presented to you for a. What were the roles of adver¬
your marketing and advertising pro¬ tising at Northwestern?
posals ? b. Who were the target audiences ?
c. What were the pros and cons
2. Products in the pioneering, competi¬ of magazines and TV?
tive, or retentive stage require differ¬ d. What did the company mean
ent kinds of advertising approaches. by "spending enough to be
What direction or approach would visible" in its budgeting?
you take if you were called upon to e. How did the group interviews
advertise different products in each help in developing the ads
one of the stages? themselves ?
f. What advertising research was
3. Select three of the specific selling
planned to assess the new cam¬
problems described in the chapter.
paign ?
For each, discuss a particular current
advertisement or commercial that il¬ 7. From the standpoint of marketing
lustrates an approach to overcoming strategy, the text draws three con¬
that problem. clusions about the Bisquick case re¬
port. Discuss information in the case
4. Describe the areas you, as advertising that supports each of the three points.
manager, would cover in a presen¬
tation to top management for ap¬ 8. Based on your analysis of the Bisquick
proval of your advertising program case :
and budget. a. What were the main factors
leading to Bisquick’s product
5. Without looking at the summary in reformulation ?
the text, review the steps in prepar¬ b. How did marketing research
ing a new consumer product for contribute to the success of
market. (Then compare your list New Bisquick in the South? in
with the text.) the North?
c. "Revitalizing a brand means
6. The Northwestern Mutual Life In¬ treating it like a new product."
surance Company case describes a Discuss.

Reading Suggestions

Association of National Advertisers, ment. Englewood Cliffs, N.J.: Pren¬

Perspectives in Advertising Manage- tice-Hall, Inc., 1972.
ment. New York: 1969.
Miller, T. J., "When You Move into a
Barton, Roger, ed., Handbook of Adver¬ Fluid and Growing Industry," Ad¬
tising. New York: McGraw-Hill vertising and Sales Promotion, Sep¬
Book Company, 1970. tember 1967, p. 45ff. Also in Klepp-
Glatzer, Robert, The New Advertising; ner and Settel, Exploring Advertising,
Great Campaigns from Avis to Volks¬ p. 74.
wagen. New York: Citadel, 1970. Rice, Craig S., How to Plan and Exe¬
Greyser, Stephen A., Cases in Advertis¬ cute the Marketing Campaign. Chi¬
ing and Communications Manage¬ cago: Dartnell Corp., 1966.
i
 VI
ADVERTISING
MANAGEMENT
 24
The Advertising Agency

The advertising agency has long played an important role not only in the
ever-changing advertising scene, but in American industry; and more recently,
in world industry.
Just what does an agency do? How does it operate? What is its role
today in relation to advertisers and to media? To understand these matters, it
is well to begin at the beginning.

History

Early Days

It is not generally known that the first Americans to act as advertising

agents were the colonial postmasters, according to Lee, who reports:

In many localities, advertisements for Colonial papers might be left

at the post offices. In some instances the local post office would ac¬
cept advertising copy for publication in papers in other places; it did
so with the permission of the postal authorities. . . . William Brad¬
ford, publisher of the first Colonial weekly in New York, made an
arrangement with Richard Nichols, postmaster in 1727, whereby the
latter accepted advertisements for the New York Gazette at regular
rates.1

Space Salesmen

In 1841, Volney B. Palmer of Philadelphia went into the business of

soliciting advertisements for newspapers, as a sales agent on a commission
basis. Newspapers at that time had difficulty in getting out-of-town advertis¬
ing. Palmer contacted publishers, offering to get them business for a 50 per¬
cent commission, but he often settled for less. There was no such thing as a
rate card, or a fixed price for space or commission. "A first demand for $500

1 James Melvin Lee, History of American Journalism, rev. ed. (Boston: Houghton
Mifflin Company, 1933), p. 74.

567
 568 by the papers might be reduced before the bargain was struck to $50.” 2
Advertising
(Today we call that "negotiation.”) Soon there were more agents, offering
Management
various deals.

Wholesalers of Space

In the 1850’s, George P. Rowell of Philadelphia became a whole¬

saler, buying a big block of space from publishers at a very low rate for cash
(most welcome), less agent’s commission. He would then sell it in small
"squares”—one column wide—at his own retail rate. He next contracted with
100 newspapers to buy one column of space a month, and sold space in his
total list at a fixed rate per line for the whole list. "An inch of space a month
in one hundred papers for one hundred dollars.” Selling by list became wide¬
spread. Each man’s list, however, was his private stock-in-trade. (The original
media package deal.)

The First Rate Directory

In 1869, Rowell shocked the advertising world by publishing a di¬

rectory of newspapers with their card rates, and with his own estimates of
their circulation. Other agents accused him of giving away their trade secrets.
Publishers howled, too, because his estimates of circulation were lower than
their claims. Nevertheless, he offered to provide advertisers an estimate of
space costs based on those published rates for whatever markets they wanted.
This was the beginning of the media estimate.

The Open Contract

In 1875, N. W. Ayer & Son of Philadelphia (successors to Rowell)

made the startling proposal to bill the advertiser for what they actually paid
the publishers, plus a fixed commission, provided the advertiser placed all his
business through the agency. This "open contract” was a big step toward a
client-agency relationship. In 1901, the Curtis Publishing Company an¬
nounced it would allow commissions only to agencies that charged the full
card rates. This was the beginning of the "no-rebating” provision in regard
to agency commission that prevailed in the agency-media field for over 50
years.

The "Full-Service” Agency Emerges

A number of free-lance writers appeared on the scene in the late

1870’s, writing the advertisements for advertisers, and also for agencies who
hoped to sell more advertising space as a result. Around the 1880’s, two of

2 Frank Presbrey, The History and Development of Advertising (Garden City,

N.Y.: Doubleday Doran & Co., 1929), p. 263.
 Earnest Elmo Calkins
580 Park Avenue
New York
21

Dear Mr. Kleppner:

You perhaps do not realize what a disorganized muddle

advertising was in the 1880's and 1890's. Most agencies merely

placed copy furnished by clients. The rate cards were farces.

The average agent simply bartered with the medium, magazine or

newspaper, as to cost, beating it down to the lowest possible

amount by haggling.

I consider my greatest contribution as being the first

agency to recognize that advertising was a profession, to be

placed on a much higher plane than a mere business transaction

of placing advertising -- with the copy, the art work, the plan

as the important part. I wrote my first advertising while still

living in my home town, won a prize for an ad, wrote copy for

local business men, worked a year as advertising manager for a

department store, and received an offer from Charles Austin Bates,

who was the first man to make a business of writing advertising

copy. There I met Ralph Holden, and from that association sprang

the name of the old firm of Calkins and Holden. I am now more

than 96 years old.

Cordially,

An Historic Letter

"All of this I have seen, and part of which I have been.’’ A letter from
Earnest Elmo Calkins, one of the pioneers in the advertising agency busi¬
ness, written three months before his death in 1964.
 570 the agencies, Calkins & Holden of New York and N. W. Ayer & Son of
Advertising
Philadelphia, went a step further: They put writers on their staffs, along
Management
with artists, and offered advertisers a comprehensive advertising service, in¬
cluding preparation of a plan, creating the advertisements, producing them,
and placing them—the emergence of what is called today a "full-service”
agency.
The advertising agency has been a great and continuing force for the
use and application of advertising. It provides a team with a variety of ex¬
periences in meeting marketing problems through advertising, and in creating
advertising. For a new advertiser, it provides a place to which an experienced
advertiser can turn for a coordinated operation that can swing into action quickly.

1900-1917

There was a great ferment taking place in advertising in the decades

before World War I. The advertising industry was getting itself organized.
The American Association of Advertising Agencies was formed to help im¬
prove the operation and effectiveness of agencies and advertising. Adver¬
tisements revealed greater and more imaginative communications skills.
Advertising became more closely identified with marketing. Research depart¬
ments appeared in agencies. Agency commissions paid by the media were
generally standardized at 15 percent for publications, 162A percent for outdoor
advertising.
The Saturday Evening Post was the prime advertising medium during
this period.

1919-1945

This period saw the end of World War I, ten years of boom, an eco¬
nomic crash in 1929, a depression that lasted until World War II, and a post¬
war boom. Among the highlights that affected the agency business were these:

In the 1920’s:
—Automobile production and advertising set new highs.
—Much advertising for electric refrigerators, electric shavers, air con¬
ditioning, washing machines, and other appliances.
—Radio arrived.

The 1930’s, and into the 1940’s:

—Radio gave a great lift to agencies, otherwise sharing in the de¬
pression. By 1942, agencies billed more for radio ($188 million)
than for newspapers ($144 million).3 Agencies also produced
many of the radio shows.

3 Printers’ Ink, Compilation Advertising Statistics since 1935. Published 1968.

 —It was an age of trying to make advertising more effective through 371
The
research. George Gallup, of Gallup Poll fame, was research di¬
Werbung
rector of Young & Rubicam. The first Starch Reports appeared; Agency
and the first radio-listening research, Hooperatings.
—Agencies competed for business with services—research, sales pro¬
motion, merchandising. One agency even had a test kitchen for
its food clients. . . . Then came World War II.

1945-1956:

—This was the post- World War II period, with consumers avid for
the goods they had not been able to get during the war; with
manufacturers anxious to use their expanded production facili¬
ties and new technologies for peacetime products. The GNP
moved to new highs, as did disposable income. Television
emerged as an explosive new advertising medium. Between
1946, the first year after the war, and 1956, the volume of ad¬
vertising tripled—from $3,364 million in 1946 to $9,905 mil¬
lion in 1956.4 And agencies grew in number and volume, and in
services rendered. The multiplicity of these services becomes one
of the elementary discussions of the agency compensation system
in the 1960s.

Why do we pick 1956 as a focal date for advertising agencies? Be¬

cause that was the year of the Department of Justice "consent decrees" that
changed the compensation structure of the agency business, as we shall shortly
see.

The Agency Business Today

There are about 5,770 advertising agencies in the United States today, doing
an annual business of about $7 billion, and employing about 75,000 people.
This analysis of the composition of these agencies is illuminating:

Number of Billings * Number of

Group Agencies (in billions) Employees

A 200 (4%) 5.2 (70%) 40,000

B 1,300 (23%) 1.7(22%) 22,000
C 4,200 (73%) .56(8%) 13,000

* The total dollar amount of business placed by its clients.

In other words, 1,500 agencies do 92 percent of the business. The other 4,200
agencies do 8 percent. The largest agency of all, the J. Walter Thompson
Company, does a world business of over $774 million annually. On the other
hand, the 4,200 agencies in Group C average less than a half million dollars

4 Ibid.
 .572 in billings per year. Half of these do less than $100,000 per year, representing
Advertising j-jie many 0ne- anc[ two-man shops handling mostly the varied advertising
Management J 1
needs of local advertisers.5

The Work of a Full-service Agency

When an agency is assigned an account, it will usually conduct research to

determine whether the product is positioned to best advantage in the minds of
the public, or whether it should be repositioned. As an example: In the case
of instant decaffeinated coffee, should it be presented as an instant coffee that
is also decaffeinated, or as a decaffeinated coffee that helps you sleep, w7hich
incidentally is instant? Each presentation appeals to a different audience. The
agency will make a study of the people who would be the best customers,
decide upon the point of most significance about the product as against com¬
petition, create a dramatic way of presenting that quality, and submit the pro¬
posed ads and commercials for approval. Along with these, it will offer a
media proposal covering consumer and dealer plans. When the ads have been
approved, the agency will produce the material, ship it to the media, see that
it runs properly, bill the advertiser for time or space and production, pay the
media, and pay the vendors.
In addition, the full-service agency may be equipped to offer a series
of collateral services as needed—such as research, sales promotion, merchandis¬
ing (including premium buying), computer softwear, and research and de¬
velopment. These may be available to clients and nonclients alike on a
negotiated-fee basis.

The Organization of an Agency

Many of today’s agencies were started by two entrepreneurs, one a creative

man, the other an account man. At first they may have handled all the func¬
tions of an agency themselves, but soon they would have to round out their
organization to handle the basic areas of full-service agency responsibility.
For the sake of clarity we will assign a title to the man in charge of each area
(this varies with the agency): for example, account management director,
creative director, media director, research director, and administrator. We trace
the development of the agency by first tracing the work of these men.

The account management director. He is responsible for the rela¬

tionship between the agency and the client. He is indeed a man of two worlds

5 U.S. Department of Commerce, 1967 Census of Business, Advertising Agencies,

advance report BC61 (A) SSI (issued June 1970) and report BC67 SAI.
—that of the client’s business, and that of advertising. He must, of course, 573
The
be knowledgeable about his client’s business and problems—his profit goals, Advertising
his marketing problems, his advertising objectives. He is responsible for Agency
helping to formulate the basic advertising strategy recommended by the
agency, for seeing that the proposed advertising prepared by the agency is on
target, then for presenting the total proposal—media schedules, budget, rough
advertisements or storyboards—to the client for approval. He then makes sure
the agency produces the work to the client’s satisfaction.
As the business grows and he has several accounts under his wing, he
will appoint an account executive to become the continuing contract on one
or more accounts and to get approvals of specific advertisements and estimates.
The account executive must be a skillful communicator and follow-up man. His
biggest contribution is to keep the agency ahead of the client’s needs.
As billings increase, more account executives are added. In time, an
account supervisor may be appointed to supervise and back up the work of
several account executives. The organizational growth of an agency consists
chiefly of the multiplication of such operational staff units. But the account
management director will continue in his overall review of the account
handling, and maintain his contacts with his counterpart at the advertiser’s
office.

The creative director. He is responsible for the effectiveness of the

advertising produced by the agency; on this, the success of the agency de¬
pends. He must set the creative philosophy of the agency, its standards of
craftsmanship. He has to generate a stimulating environment that inspires
writers and artists to do their best work, and in turn inspires the best men to
seek work there.
At first, the writers and artists will work directly with him, but as the
business grows, various creative directors are assigned to various accounts,
reporting to the head creative director.
There will also be the Print Production Department and the TV
Commercials Production Department. (There are variations in agencies as to
the separateness or togetherness of the print and television creative and pro¬
duction operations.)
To keep the work flowing on schedule from department to depart¬
ment, and to meet all closing dates without overtime, are the functions of the
Traffic Department.

The media director. This person is responsible for the philosophy

and planning of the use of media, for the selection of specific media, and for
ordering space and time. As the agency grows, he may have a staff of media
buyers, divided by media (print or TV or radio), accounts, or territory. He
will have an estimating department and an ordering department, as well as
 ADVERTISING AGENCY ORGANIZATION CHART

V. P. Creative V. P. Account
Services Services

Fashion Writers T V Production Print Production Account

Art Directors I Supervision

Courtesy:
The American Association of Advertising Agencies
Traffic Account Exe

574
 Board of Directors

President

V. P. Marketing V. P. Management
Services & Finance

Media Research Sales Prom. Office Mgm’t Accounting Finance

Personnel
 376 one to handle the residual-payment records and other business records related
Advertising
to media. He may work with independent media services in the planning
Management
and purchase of media, especially TV and radio time, as we will shortly
describe.

The research director. Early in its work, the agency will require
research to define its marketing and copy goals; later research will also be
used to appraise the effectiveness of its advertising after it has appeared. The
agency may work through an outside research consultant and organization. In
some agencies, research and media planning are coordinated under one man.

The administrative director. Like all businesses, an advertising

agency needs an administrative head to take charge of financial and account¬
ing control, office management, and personnel (including trainees).

The plans hoard. Many large agencies will have a plans board,
called by various names, consisting of the senior members of the different
departments, who review all new campaign proposals before they are sub¬
mitted to the client, to make sure that the strategy represents the best thinking
of the agency. In smaller agencies, the heads of the agency usually keep close
supervision of the output.

The Agency Commission System

Can anyone open an office and call himself an advertising agency? Yes, and
we have already seen how many one- and two-man shops regard themselves
as agencies. But an agency will not get a commission for the advertising it
places in media unless these media "recognize” it. (Newspapers pay no com¬
mission on local advertising, which they handle directly at a low rate.) To get
recognition, a new agency usually must show that it has business to place; it
should demonstrate competence in advertising; and it should meet the financial
requirements of the media’s credit departments. Every medium decides for
itself whom it will recognize as an accredited agency. At first the agency may
apply directly to that local or trade medium with which it wants to place some
business. Or the agency can apply for nationwide recognition among media
by applying to their respective national trade associations, who perform the
credit-checking function for their members.6 Upon the association’s recom¬
mendation, its members usually recognize the agency and allow it commission
on the business it places.

6 American Newspaper Publishers Association (ANPA), for most newspapers.

Periodical Publishers Association (PPA), for most consumer magazines. American Business
Press (ABP), for most trade and industrial publications. Agricultural Publishers Association
(APA), for most farm papers.
 Let us say an agency gets approval to insert a page advertisement in 577
The
a magazine at $1,000 for the space. The advertisement appears. The magazine Advertising
will bill the agency $1,000 less 15 percent agency commission, or $850 net. Agency

In addition, the magazine may offer a 2 percent cash discount on the $850, or
$17, for prompt payment. The agency then bills the advertiser $1,000 and
passes on the $17 publisher’s cash discount on the cost of the space, for
prompt payment by the advertiser.7 The same procedure applies to newspapers,
which also allow 15 percent. Television and radio allow 15 percent, but do
not, as a rule, allow a cash discount. Outdoor allows 162A percent agency com¬
mission.
The agency commission applies only to the cost of space or time. It
does not apply to the cost of producing the material for print for the ads, or
the production of commercials. The agency usually bills production expenses
at actual net cost plus a service charge of 17.65 percent (which is 15 percent
on the gross), subject to prior agreement with the client.

The Consent Decrees

Up to 1956, the media associations who granted agency recognition

required an agency seeking such recognition to agree not to rebate any part
of its commission to the advertiser. In that year, the Department of Justice
held that any media owner could legally make such requirement individually,
but for a group of publishers, joining through their association to agree to
impose such restriction was price-fixing, and that was illegal.
As a result of this action, the trade associations involved signed con¬
sent decrees in 1956, agreeing in substance not to intervene in any deal the
advertiser and agency saw fit to make with each other.8 Since then, the field
has been wide open between advertiser and agency to work out whatever ar¬
rangement they see fit.

Agency Compensation

The action of the Department of Justice came just about the time that a
number of large advertisers were becoming restive with the entire philosophy
of the advertising-agency compensation structure. They felt that the system
whereby the agency got its chief income from the media the advertiser used
was not logical. It did not recognize that there could be a difference in the cost
to the agency of handling two accounts of the same size. As an alternative,

7 The agency does not give a discount of its 15 percent commission, as that repre¬
sents a payment for services for which cash discounts are not customary.
8 The American Association of Advertising Agencies likewise signed such a con¬
sent decree, agreeing not to make a no-rebating stipulation a requisite for membership.
 578 they suggested that the total agency compensation for handling the account
Advertising
Management
be separately negotiated between the advertiser and the agency, and that the
commissions the agency gets on that account be credited to the advertiser.
(Before the consent decrees, that would have been called "rebating,” and not
sanctioned.)
The fee idea was not new. Industrial and medical agencies, whose
commissions on the low-cost trade-paper space were not adequate compensa¬
tion for their work, had long worked on a minimum-fee basis. Even adver¬
tisers who had been on the "commission” system invariably paid a service
charge on production and other special services, so that as a practical matter,
there has always been a separate agreement between agency and advertiser as
to how the agency was to be paid. It wasn’t until the early 1960s that a
prominent agency announced it agreed to handle a major account on a com¬
pletely free basis. Negotiated fee arrangements are more common now, vary¬
ing widely in what the agency is to do for how much.
"If any generalizations can be made regarding the comparative costs
of agency service under fees and commissions,” said the Association of Na¬
tional Advertisers in its report on the subject, they would be these:

Savings to advertisers are most likely to occur under a fee arrangement

when the advertising budget is concentrated in mass media, the ad¬
vertiser’s creative or service needs are limited, and/or the client is
largely self-sufficient in marketing. When these conditions are not
present, the converse is more likely to be the case.9

The Full-service House Agency

A full-service house agency, referred to just as a "house agency,” is one that

is owned by an advertiser and does all the work of an independent full-
service agency. Such an agency can handle the advertising of other firms, too.
In the early years of the century, there were many house agencies: Procter &
Gamble used to have one—the Procter & Collier Company of Cincinnati—
but like many other early advertisers, they gave up this practice in favor of
independent agencies.
The chief reason an advertiser has a house agency is to save a part of
the 15 percent commission from which the agency derives its income. The
advertiser also seeks the additional profit that he believes might accrue from
a more efficient total operation. Full-service house agencies have, on the whole,
not worked out well. To save a part of the 15 percent, advertisers have often

9 New York Association of National Advertisers, Inc., Fee Methods of Agency

Compensation, p. 65. Copyright 1969.
sacrificed what they were getting for the 85 percent. In the world of inde¬ 579
The
pendent agencies, skilled men who prove their talent move up rapidly in Advertising
compensation. The house agency is drawn into the slower and smaller com- Agency

pensation-raisc policy of the large corporation. As a result, house agencies

generally cannot attract and hold the best creative talent. Their work tends
to become inbred because of lack of contact with the problems of other ad¬
vertisers. Many advertisers who have acquired recognized full-service agen¬
cies have given up such house agencies and gone back to the independents.

The In-house Agency

Four developments in the late 1960’s gave birth to another new structure in
advertising—the in-house agency. First was the pressure by large advertisers
for ways to save money in their total advertising operation and to improve
the special type of service they needed.
Second was the quest for creative talent wherever an advertiser could
find it. Sometimes advertisers found fine work being turned out by a small
agency, which they could retain on a fee basis, just for that work. Soon there
appeared on the scene men who got together to form just a creative service,
generally called a boutique. Among them were men who had made their mark
in big agencies; also, while working for agencies, did moonlighting on other
assignments.
The third factor was that numerous agencies made some of their
services available on an a la carte basis (also called a modular basis). Some
agencies would offer to place the ready-made ads (prepared by the adver¬
tiser) for a percentage of the 15 percent commission they received from the
media.
The fourth development was the appearance of independent media
services, especially in the field of television and broadcasting, prepared to
handle as much of the total media operation as an agency or advertiser de¬
sired.
Thus an advertiser could, if he wished, buy his creative work from a
creative service, buy his media through a media service, and place his adver¬
tising through a recognized agency that would charge only a small part of its
commission for clearing the ads.
But it takes internal coordination and a considerable amount of skill
to handle such an internal operation—which is referred to as an in-house
agency to distinguish it from the full-service house agency or the full-service
outside agency. Such an arrangement is suitable, if at all, for large advertisers
only, as it takes a sizable appropriation to warrant the cost of hiring talent
capable of handling such an operation, and to keep it busy full time.
Advertisers using an in-house agency may do so on some of their
 580 projects, as in the case of a new product on which they wish to keep fingertip
Advertising
control, and continue to use independent agencies on other assignments,
Management
either on a full-service or a la carte basis.

Two Views on Agency Operations

What the new breed of marketers wants is to be able to move fast,

to avoid endless meetings, to make their advertising more attuned
to their dealers and their salesmen. Companies such as Monsanto
and Thom McAn Shoes switched to free-lance creative services partly
to get faster action; they churn out a lot of different ads and they need
quick results.
—From an editorial in Advertising Age,
September 9, 1971, p. 12.

Western Electric Company, a wholly owned subsidiary of the Ameri¬

can Telephone and Telegraph Company, invited three agencies to
solicit its account. "Only full-service agencies were in the running,"
explained Mr. John F. Rhame, Director of Advertising. "We want
things available right there when we want them."
—New York Times, April 22, 1971, p. 69.

Competing Accounts

The relationship between client and agency is a professional one. The agency
will share many of the client’s confidences, often including plans for new
products. Therefore, a full-service agency will not, as a rule, accept the adver¬
tising of products in direct competition with those it is currently handling.
This has led to many conflicts in this age of conglomerates, when a client may
buy a company one of whose products competes with one the agency is pres¬
ently handling. When two agencies consider merging, the first question is,
Will any of their accounts conflict? This subject also presents a problem in
dealing with free-lance creative services.

The Agency of Record

Large advertisers will have a number of agencies handling the advertising of

their various divisions and products. To coordinate the total media buy, and
the programming of products in a network buy, the advertiser will appoint
one agency as the agency of record. It will make the corporate media contracts
under which other agencies will issue their orders, keep a record of all the
advertising placed, and transmit management’s decisions as to the allotment
of time and space in a schedule. For this service, the agencies involved pay a
small part of their commissions to the agency of record.
Agency Networks 581
The
Werbung
In the 1920’s, Lynn Ellis, an advertising management consultant, saw the Agency
problem of middle-size agencies that had no branch offices to handle the
regional problems of their clients. He organized a group of such agencies—
one in each main advertising center—into a "network,” to help each other
on any problem in their respective areas, and to exchange ideas, experiences,
and facilities. The success of this plan has prompted the formation of other
agency networks.

International Agency Operations

Virtually every large American agency has branch offices in the lands where
their clients conduct their international business; there are such branches in
88 countries throughout the world. A report of the five leading agencies
whose stock is publicly owned disclosed that in 1971 profits on their inter¬
national operations averaged 44 percent of their total profits.10
Having branch offices also serves as a defensive step for agencies. If
an agency does not have a foreign office to serve an overseas client, that adver¬
tiser will turn to the branch office of an agency that does have such facilities,
opening the door to that competitive agency to take over the main American
part of the billings—the largest of all.
However, setting up a foreign office involves more than setting up a
branch office within the United States. Each land is a different market, with its
own language, buying habits, ways of living, mores, business methods, market¬
ing traditions, and laws affecting business. In recognition of this, most
American agencies wishing to operate abroad make some financial arrange¬
ment with a successful agency, purchasing a majority or minority interest.
On the question of manning such an operation, Business Week reports:

Strong local management is a necessity, not only because natives know

consumer likes and dislikes far better than most foreigners, but be¬
cause the once-popular idea of sending Americans to "show them how
it’s done” seldom works out in practice.* 11

Instead of trying to staff the foreign agency branch with some of their
own personnel, American agencies usually appoint a top management man
at the head of the overseas branches, then regularly gather the key members
of their international offices at the main office for an intensive seminar on the
philosophy and operation of the agency, for them to carry back and adapt as
they, see fit.

30 Loeb, Rhoades & Co. (New York), Industry Survey, May 1972.
11 Business Week, September 12, 1970, p. 81.
 382 Review Questions
Advertising
Management
1. Give a brief description or explana¬ 3. Discuss the primary functions of a
tion of the following: full-service advertising agency?
a. full service agency
4. Describe the major responsibilities of
b. collateral services
the account management director. Of
c. traffic department
the creative director. Of the media
d. plans board
director.
e. agency recognition
f. 1956 consent decree 5. Define agency commission and ex¬
g. fee system plain how the system works. What
h. agency of record is and is not included?
i. agency network
6. Distinguish between the house
2. What were the steps taken by N. W. agency, the in-house agency, and the
Ayer & Son, and the Curtis Publish¬ independent agency.
ing Company, that placed the adver¬
tising agency in a new role ?

Reading Suggestions

Advertising Age, "The Centennial of search, May 1968, pp. 177—180. Also
the J. Walter Thompson Company," in Kleppner and Settel, Exploring
December 7, 1964. Advertising, p. 310.
American Association of Advertising Loomis, Carol J., "Those Throbbing
Agencies, A Handbook for the Ad¬ Headaches on Madison Avenue,"
vertising Agency Account Executive. Fortune, February 1972, p. 103ff.
Reading, Mass.: Addison-Wesley
Lowndes, Douglas, Marketing: The Uses
Publishing Company, Inc., 1969-
of Advertising. Elmsford, N.Y.: Per-
Barton, Roger, ed., Handbook of Ad¬ gamon Press, Inc., 1969.
vertising Management. New York:
McGraw-Hill Book Company, Inc., Television Age, "Agency Presidents
View the Next Ten Years,” June 3,
1970.
1968, pp. 21-22. Excerpted in Klepp¬
Calkins, Earnest Elmo, Modern Adver¬
ner and Settel, Exploring Advertising,
tising. New York: Appleton-Century-
p. 318.
Crofts, 1905.
Gerson, Irving B., Tomorrow’s Adver¬ Weiss, E. B., "The Shape of the Agency
tising "Agency.” Chicago: Gerson, Business Beyond 1980," Advertismg
Howe & Johnson, Inc., 1970. Age, June 26, 1972, p. 61. This is
the first in a series of ten monthly
Hower, R. M., The History of an Ad¬
feature articles on the future of ad¬
vertising Agency, rev. ed., Cambridge,
vertising.
Mass.: Harvard University Press,
1949. Wyman, S., and Herbert Maneloveg,
King, William R., "A Conceptual "Agency Service: A la Carte or Full
Framework for Ad Agency Compen¬ Fare," Advertising Age, February 7,
sation," Journal of Marketing Re¬ 1972, p. 49ff.
 25
The Media Services

One of the most significant changes in advertising in many years has been
the development and acceptance of media services, which appeared on the
scene in the late 1960’s.

Background

The most ephemeral thing in television and radio is commercial time. To a

television or radio station, commercial time that isn’t sold today is income
lost forever. A newspaper can adjust the number of its pages to the amount
of advertising scheduled; so can a magazine within limits. But TV and radio
stations have no such flexibility; they must be on the air for the licensed period
of time. Mindful of this fact, time buyers, holding an extensive schedule in
their hands, have long been approaching stations, offering to buy "if the price
is right.” It might be a lower rate for the entire schedule; it might be more
spots per dollar; it might be getting a greater proportion of spots in desirable
time at the same price as spots in less desirable time periods.
To the station it meant the assurance of some income for time that
might otherwise be lost. To the advertiser, it meant getting more for his TV
and radio dollar. The prowess of an agency’s media operation was judged by
the way it could stretch the advertiser’s dollar. The name of the game was
negotiation.
The media-buying services grew out of this long-followed trade
practice.

The Media Services Appear

There had long been an industry created by entrepreneurs who had developed
a plan for acquiring large blocks of radio and television time at low prices,
through a barter arrangement (which we will discuss later), and selling that
time below card rates. They came to the advertiser from the time-selling side.
But in the 1960’s, a new breed of men came into the field—most of them
former senior executives of large agencies—who set up independent media

583
 CONFIDENTIAL MARKETING DATA FOR Sound media plans—ones which can be
solidly documented by logic and media

MEDIA PLANNING facts—are able to be constructed only

where marketing objectives are explicit¬
ly clear. The purpose of this form is to
aid in the achievement of that clarity.
VITT MEDIA INTERNATIONAL, INC.
43TMADISON AVENUE
NEW YORK, NEW YORK 10022
BROADCAST TIMEBUYING SPECIALISTS (212)751-1 300 TELEX 1 2-7690

1. PRODUCT. 2. Date:

3. Budget: $ 4. Advertising Period: Start date End date

II. 5. PURPOSE OF PLAN (Check where applicable):

a)__lntroduction b)_ Annual cL .Heavy-Up d). .Weight test (. .hi;. .low)

4) Other (pis. explain):

III. 6. MARKETING OBJECTIVES (Pis, describe briefly the two or three objectives you feel should govern the product s strategy e.g.
a) Where advertised must use competive pressure;
b) Color a must):

a)

b)

c)

IV. AUDIENCE (Pis. check primary and secondary audiences by categories shown):

Primary Audience Secondary Audience

V
7. Sex ..Female, .Male Female .Male

8. Age (Yrs) ...to 6; 6-11;_ 12-17; .to 6;. 6 11;.

. - .12-17;

.18-35;. .36-49; .50+ 18-35; 36-49: .50+

9. income (SM) .Under 5. .5.-9.9. ..Over 10 Under 5.. .5.-9.9. _Over 10

10. Region* NE. .EC. WC. NE .EC. WC.

11. County Size* : ___ A R .D A ..B. -C .D

* Nielsen

V. GEOGRAPHIC SALES (Pis. first show percent of product's sales by its sales territories, secondly your best estimate of
how percents would fail if best potentials by sales territories could be realized.)

%
Tot.
12. Territories: 100.0

13. % Sales: 100.0

14. % Potentials: 100.0

A Media Planning Data Sheet

Showing the key questions involved in creating a media plan.

584
 Vi. SEASONAL SALES (Pis. repeat same procedure as in V):
1st 2nd 3rd 4th Grand
J F M Tot. A M J Tot. J A S Tot i i 0 Tot. Total

15. % Sales:

16. % Potential:

VII. COPY (Pis. check copy lengths and sizes available for consideration):

TV j Radio % Mags. % Newsp. % Outdr. %

60" 60" P-4C ROP 24
30" 30" P-BW Color 30

Other

VIII. MEDIA

18. Reach & Frequency (Pis. check the relationship of reach to frequency you feel most pertinent to this product):

Reach more important Reach less important Reach and frequency equal

19. Competition (Pis. list share of market, advertising budgets and distribution among major media of product and its three
largest competitors):

Mkt, Ad. Bud., % Media Distribution _____

Share $M TV Net TV Spot Radio Mags Newsps Outdr Other Total

Prod. 100.00

A. 100.00

B. 100 00

C.
100.00

IX. 20. OTHER CONSIDERATIONS (Pis. check other items which must be considered in constructing this media plan):

a._ .corporate network support

_ethnic and/or special market support

c. coupon and/or sampling promotion support

d others
SIGNED:
CLIENT

SIGNED:.
VMIPARTNER

Courtesy: Vitt Media International, Inc.

585
 386 services, performing whatever part of the total media operation an advertiser
Advertising
or agency might require—planning, scheduling, negotiating, verifying. The
Management
chief service featured by most of them was at the pocketbook level, in negotiat¬
ing the purchase of time on behalf of the advertiser . . . and thus the inde¬
pendent media services were born.
The heads of the media services believed they could save the adver¬
tiser money by operating with an experienced staff of negotiators and media
technicians, concentrating on media function only. They also felt they might
be able to save agencies money in handling some phases of their own media
operations. Upon their ability to make good on this challenge rests the survival
and success of the independent media service.
The advent of these services was also in response to the quest of
some advertisers to retain specialists to handle their work, operating on an
in-house-agency basis. Some advertisers also saw that competition in media
negotiations would result in the best rates for the advertiser—and media
services represented competition to the agency’s media department.

How Media Services Function

A media service is retained by an advertiser or an agency at one or both of

two points in time:

1. When initial media planning is being done. The service may de¬
velop the plan for the agency or advertiser, or the service may
counsel them in the development of the plan from its specialized
knowledge of media usages and media rates.
2. When the media plan is ready to be executed, and the media buying
is ready to be done. If the media service has developed the plan,
then after approval by the agency or advertiser, it proceeds to
purchase the media schedules according to the specifications. If
the plan has been developed by the agency or advertiser, the media
service reviews the specifications of the plan and agrees to accept
responsibility for purchase of media schedules that will meet the
specifications.

After the media buys have been made, the media service provides the
agency or advertiser with summaries of the media schedules purchased and
estimates of the audience delivered. Generally, the media service will also
verify schedule performance (by means of television or radio-station affidavits
or print-media checking copies), check on preemptions and make-goods, and
pay the media. Some of the media services will also provide the agency or
advertiser with a "post-buy analysis," documenting the audience delivery of
the media schedule according to syndicated research-service measurements of
the media schedule as it ran. Generally this is what agencies do also; the media
services try to do it better.
Compensation 587
The Media
Services
There is no standard method of compensation. Each service makes its own
arrangements with the advertiser or the agency, based on the services it is
to perform. The media still pay the agency commissions. Two arrangements
are current examples of methods being followed: One is a set fee based on
total billings; another is an incentive arrangement, such as the following:
The fee the buying service earns comes out of dollars saved. This means all
specifications and objectives must be met prior to a fee’s being earned. An
example of an incentive arrangement is as follows:

1. Once all objectives have been met for budgeted dollars, the first
5% of all dollars saved reverts to the buying service.
2. The next 10% of all dollars saved reverts to the client.
3. Thereafter, all dollars saved are split 50-50.
4. The agency commission is paid on gross media cost.

Relationship of Media Services to Agencies

Although the specialized skill offered by media services is sometimes em¬

ployed by advertisers, frequently advertising agencies avail themselves of the
media services to augment their own media staff.
In those instances, use of outside media services can also reduce their
nonmedia servicing and overhead costs. To the small-to-medium agency, a
media service may also be helpful in case of a sudden increase in the work
load. Some have found that they can use the media services to buy more
effectively than they can do themselves.
Where the media service is retained on an incentive basis by the ad¬
vertiser who also retains an agency, the agency generally receives full agency
commission on gross media costs.

Working with Media Services

Grey Advertising agency, which has used independent media services in con¬
nection with its own media operation, offers the following suggestions on
using media services:

1. Media planning must be very specific. It must spell out all facets
of the buy. It must insist on spot-by-spot reporting to avoid averag¬
ing within or between markets. The number and spread of stations
to be bought must be specified. The method of estimating rat¬
ings should be agreed upon in advance. Merchandising require¬
ments should be spelled out, and documentation of all facts and
costs should be insisted upon.
 388 2. All post-buy analysis should examine in depth how closely the buy
Advertising met all specifications set up in the original plan, such as delivery
Management
of target audiences, achievement of estimated rating goals.
3. All checking, including affidavits fvom stations, station logs, etc.,
must be cavefully done. Checking and evaluating should be done
over an extended period of time. One flight alone is not a sufficient
test.1

Barter

Barter is another way for an advertiser or agency to buy time below card
rates. It has nothing to do with media services; it is an alternative method,
which works on a completely different principle. We discuss it in this chapter
as a matter of convenience only.
Long before barter, as practiced today in the buying of television and
radio time, appeared on the scene, hotels began a practice that they continue
to this day, of paying for advertising space in exchange for due bills, which
were good for the payment of rooms. They bartered their rooms for advertis¬
ing space. The barter system has developed into an $80-million industry in
the buying and selling of radio and television time, below card rates. The
operation extends to print advertising also.
Barter in broadcasting began in the early days of radio, when cash
was always tight (even as it often is today), and studios would have to spend
a lot of money for equipment, and also arrange for gifts to be given away at
the quiz shows. Some entrepreneurs got the idea that they would get these
goods at very low cost, and barter them with the stations in exchange for
blocks of time on the air—again at a very low rate—and then sell that time
to advertisers below card rates. (One firm holds forth a savings of 50 to 70
percent on radio and 20 to 50 percent on television.) The Federal Com¬
munications Commission has held that bartering for broadcast time is legal.
Firms that handle barter will supply a station anything it needs in
barter for time, but the chief subject of barter is program material in the form
of films—a constant need of TV stations. These include Flollywood films,
films of popular old TV programs, and, more important, films of current
popular TV series, which the barter houses control. All of this involves no
cash disbursement to the station.
Some barter houses now pay cash for blocks of spot time, virtually
becoming brokers or wholesalers of time. They build up an inventory of time
for sale below card rates, which they then offer to advertisers or agencies.
Of course, barter has its drawbacks. Often the weaker stations in a
market go most for it. Some stations won’t accept barter business from ad-

l Grey Matter, June 1970. Published by Grey Advertising, Inc., New York.
vertisers already on the air in the market. Much of the time is poor time (even 389
The Media
though it is still good value at the low rate paid). Prime' or fringe time is
Services
usually preemptable. Barter time is often treated by the stations like a second-
class passenger. The advertiser or agency does not deal directly with the
station; it deals with barter houses, who then deal directly with the station.
Problems of make-goods can be sticky.
Today barter is a flourishing practice, used for many well-known
products.

Trade-out Syndicated Shows

Advertisers themselves have entered the field of bartering, or syndicating,

their broadcast productions, meaning that they produce a TV or radio show
at their own expense and include their own commercials, then offer a film or
tape of that show to stations for their own use, without financial outlay. The
station is then free to sell the rest of the available commercial time.
The advertiser is bartering the cost of the production for the time of
his own commercials. Advertising Age announced that the Coca-Cola Com¬
pany would barter six half-hour auto-racing specials to be sponsored in local
markets by local Coca-Cola bottlers, and that the Pillsbury Company would
produce two more Magic Circus one-hour specials for syndication. These
would be numbers 3 and 4 in a series of one-hour telecasts starring magician
Mark Wilson. The first of these specials was aired in 101 markets.2
The advantage to the advertiser in providing these trade-out syndi¬
cated shows, as they are called, which are costly to produce, is that he is
assured of good spots for his own commercials, and since he is offering the
station good-quality programming, he is able to obtain advertising time
efficiently.

Review Questions

1. Describe what services a media service services with those you might em¬
firm performs. ploy as an advertiser working with
your own or your agency’s media
2. Discuss the several major reasons be¬
buying department.
hind the development of media
services. 5. Define and describe the barter
method of buying time.
3. At what points might such a service
be used by an advertiser or agency?
6. What are trade-out syndicated pro¬
4. Compare the guidelines suggested in grams ? What are their advantages
the-text for effectively using media for the advertiser ? For the station ?

2 Advertising Age, December 6, 1971, p. 63.

 590 Reading Suggestions
Werbung
Management
Dannehower, Gilbert, and Sam Wyman, "Media Buying, Inside and Out," Media
"The Case for the Independent Media Decisions, December 1969, p. 27.
Buying Services," Madison Avenue,
"The Day of the Media Consultant,"
February 1972, p. 12ff.
Media Decisions, May 1971, p. 78.
Manoff, Richard, "Negotiating with the
Negotiators,” Media Decisions, May "Now They’re Edging into Print,"
1971, p. 36. Media Decisions, October 1970, p. 27.
 26
The Manufacturer’s
Advertising Department

When a manufacturer first decides to advertise, someone has to be

made responsible for ordering the advertising, having it produced and placed,
and following up on it. On that day, an advertising department has been
launched; the man in charge becomes the advertising manager. The adver¬
tiser may also appoint an agency, whose function and that of the advertising
department differ. Basically, the chief function of the agency is to plan, create
and place advertising designed to meet the advertiser’s marketing goals. The
chief function of the advertising manager and his department is to direct and
administer the whole advertising effort, to provide needed advertising ser¬
vices other than those performed by the agency, within the framework of the
marketing plans of the company, and to administer the budget.
From such beginnings, large advertising departments have grown,
responsible for budgets running into millions of dollars.

Organization of the Advertising Department

Each advertising department is unique, reflecting the personality of its man¬

agement and its corporate planning and marketing needs. Even the titles of
the chief advertising functionaries differ—advertising manager, advertising
director, vice-president in charge of advertising, or vice-president in charge
of marketing. In an extensive survey among its members, the Association of
National Advertisers found advertising functions to be organized in certain
patterns, as follows: 1

By product 40%
By subfunction of advertising 19
By market (end-user) 18
By media 9
By geography 5
Other, or a combination of these 9

1 The Association of National Advertisers, Inc., The A.N.A. Advertising/Marketing

Organization Study (New York, 1967), p. 7.

591
 392 Organization by product (40%). If the company has one product,
Advertising
the whole advertising department will be dedicated to it, under an advertising
Management
manager or director. If it has more than one product, or divisions of products,
the advertising of each may be assigned to one man, often called the brand or
divisional advertising manager, under the company advertising director. This
structure is the most prevalent organizational form.

Organization by subjunction of advertising (19%)• In this setup,

the advertising department is divided into activity areas, as print media buy¬
ing, TV/ radio buying, television production, print production, outdoor ad¬
vertising, print media, sales promotion. This arrangement is found chiefly
among the very large advertisers with several agencies. Each functionary
serves as an expert in his field in dealing with the agencies on those subjects.

Organization by market (end user) (18%). This refers to large

producers of raw material, whose finished products end up in different market¬
ing worlds. The Celanese Corporation has one division selling chemicals and
plastics; another selling textile fibers. The Gulf Oil Company has one division
selling oil, another antifreeze, another chemicals, another petroleum and
specialty products. Each is a world apart, marketwise. Each has its own adver¬
tising department.

Organization by media (9%)- The same as by subfunction of ad¬

vertising, except limited to media.

Organization by geography (3%). The advertising function is or¬

ganized according to the marketing territorial divisions. Shell Oil Company,
for example, has West Coast, Midwest, and East Coast offices.

Centralized or Decentralized Control

Just what does the advertising department do? How does it relate to other de¬
partments? This brings us to the question of centralized or decentralized
control.

Centralized Advertising Control

In a centralized-control advertising operation, we have an advertising

manager who reports to a top marketing executive—or in a few cases (mostly
large industrial firms or utilities) to the director of public relations—from
whom he gets his budget, marketing directives, and information. He is re¬
sponsible for the total advertising operation; in a majority of cases, this in¬
cludes sales promotion. Most companies with budgets under one million
dollars have centralized operations; a number above that figure do too.
 The advertising manager. Perhaps the best way to see what an -593
The
advertising department of a national advertiser does is to look at it through Manufacturer’s
the eyes of the advertising manager. Here is a partial composite list of what Advertising
Department
the responsibilities of different advertising managers include:

1. Get a budget approach.

2. Prepare an advertising plan within the budget set by manage¬
ment.
3. Make recommendations for an agency if one has not already been
chosen. (Usually top management makes final decision.)
4. If the company plans to use modular or outside services, select the
services, direct and coordinate their efforts.
5. If the company uses a full service agency, get sharp definition of
work they will do, and charges; organize handling of rest of
work, such as sales promotion.
6. Inform agency of all pertinent marketing data needed to make
their plans on target. Guide the direction of their efforts. Tell
them what is needed. The how is up to them.2
7. Review and pass upon plans and advertisements submitted by
agency. Get final approval on new material from top manage¬
ment.
8. Negotiate corporate media buys for use in all the advertising di¬
visions of the company.
9. Supervise planning and creation, also production, of sales-promo-
tion material, including displays and printed pieces.
10. Prepare, issue, and control cooperative advertising.
11. Keep sales force informed of all forthcoming advertising.

2 This dichotomy is that of Clarence Eldridge.

DIRECTOR .i
ADVERTISING
Administer $30,000,000 Advertising Budget
Our organization offers an excellent opportunity for an individual with corporate
or agency advertising experience who has a proven record of initiative and
problem solving ability. Candidates must possess managerial ability and have
successfully directed tne activities of others.
The executive we seek will be responsible for coordinating advertising and sales
promotion. Must have the potential to assume even greater responsibility in a
short time.
If you match the profile we have outlined, we invite you to call:

Advertisement, New York

Times
 394 12. Organize, plan, and direct issuance of dealer advertising service.
Werbung
Management 13. Working with sales department, help plan sales drives.
14. See that all bills are checked; keep a strict account of funds and
status of budget, including costs of jobs in work and non-
cancellable commitments.
15. Build and train a staff that can grow.
16. Have plans ready for next year’s proposal and budget recom¬
mendations.

The departmental organization. There are many ways and com¬

binations of ways to organize the work within the department. We have here
a series of basic schematic charts that may clarify the allocation of responsi¬
bility.3
Chart 1 shows a department organized by product or marketing
division. A man, generally referred to as the advertising brand manager, may
be assigned to handle each of these units; he may handle several brands.

Chart ^

Chart 2 shows a centralized advertising and sales-promotion depart¬

ment organized by advertising subfunction. These subfunctions may vary, as
sales promotion, publicity, art and production, exhibits and displays, but
each represents specialists who work with the brand or product managers. The
media department, for example, would negotiate all the deals for corporate
rates from the media. This setup is found chiefly among the very large ad¬
vertisers.

3 Roger Barton, ed., Handbook of Advertising Management (New York: McGraw-

Hill Book Company, 1970), pp. 4-8.
 J>9-5
The
Manufacturer’
Werbung
Department

Chart 3 shows a centralized department organized by product, with

supporting functional units. The brand managers get their budgets and their
directives from the advertising director. Each of the advertising brand managers
may avail himself of aid from the respective company departments.

Chart ^
 596 The chief feature of the centralized advertising operation is that the
Advertising
flow of authority is from a central top-management source to whom the ad¬
Management
vertising director is responsible.

Decentralized Advertising Control

The decentralized advertising department has a different structure.

It is usually found in large companies with many marketing divisions. Each
division or company will represent a separate marketing team. Each will
be headed by a product brand manager (not to be confused with the adver¬
tising brand manager in charge of the advertising of the brand). The product
brand manager is completely responsible for sales and profits. He is the one
who decides what is needed for the advertising function, and he has an agency
assigned to him. (Chart 4)
There is also a corporate advertising department with a staff of special¬
ists that work with agencies and brand managers. It has a media department that
makes the bulk time and space contract deals for the entire corporation. It
may have a TV production department, bringing the total experiences of the
company to bear on the production of commercials for any division; it will
have a research department. All these departments are available to the product
brand managers for advice on technical operating questions.
The pioneers in the product-manager concept (which bypasses the
advertising-manager concept) are Procter & Gamble, of whose brand-manager
system Television Age had this to say:

The brand manager came to work closely with the account executive
to give his product the greatest degree of push. Unlike salesmen, who

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 398 handled the full line, the brand man focused all his talent and ener¬
Advertising
gies on that single objective.
Management
He’s not alone. He is not only free to call on the company’s other
departments for help, he’s expected to. As the modern P & G brand
manager operates, advertising gives him the biggest boost. He makes
use of all its sections: copy, art and packaging, media, sampling and
couponing, and legal. He relies on market research to determine the
packages, the scents, the sizes, the colors people want—on product
research to improve his brand when competition begins breathing
down its label—on sales to pry shelf space for it out of reluctant
grocers and druggists.
The typical P & G brand manager is young, tough-minded, and a
relentless competitor—whether he’s going against a product being
pushed by Lever or by his counterpart down the hall at P & G, or, as
is often the case, both.
The brand man selects the type and extent of promotion for his
product, then works out a budget. But he has to make it pay off in the
test market before he’s allowed to play for keeps.
From the outside, Procter & Gamble is a tremendous corporate struc¬
ture that manufactures some 65 products. But from the inside, it is, in
effect, 65 efficiently managed, doggedly competitive, single-product
companies, each able to draw on apparently inexhaustible reserves of
money, research brains, advertising talent, and sales muscle. And it
all pivots on the brand managers.4

The Advertising Budget

"Management is called upon to make no decisions that are more important, or

that can more significantly affect the health, growth, and profitability of the
business,” said Eldridge, "than those involving the marketing budget. In
many companies whose success depends upon effective marketing programs,
the cost of marketing is the largest controllable expense; in some companies
the cost of marketing a product is even greater than the cost of producing it—
including raw materials, labor, and packaging costs.” 5
The decision on how much to invest in advertising is an outgrowth of
the total operating philosophy of the company, its long-term and short-term
goals. It is based also on how important a role advertising plays in the sale of
goods of an industry. It is far more important in the sale of consumer goods
than for industrial goods. Within one class of consumer goods, there is a big
variation between companies also, as we discussed in Chapter 3.

4 Television Age, July 29, 1968, pp. 39-40. Reproduced by permission.

5 Clarence E. Eldridge, The Marketing Budget and Its Allocation in the Advertising
Budget (New York: Association of National Advertisers, Inc., 1967), p. 25.
 The Federal Trade Commission issues figures of expenditures by in¬ ^99
The
dustry, but these are poor guides in setting a budget. Different companies Manufacturer
charge different things to advertising. Some charge samples and exhibits; some Advertising
Department
don’t. Some include overhead; some don’t. Furthermore, the figures are a
composite of a total industry, nonadvertisers and advertisers, large advertisers
and small ones. As a practical matter, mindful of all the variables, and of the
other demands on the company purse strings, advertisers use a number of
ways to arrive at a budget for advertising.

1. Percentage-of-sales method
2. The task method
3. Share-of-market method
4. Use of mathematical models
5. Empirical method

Percentage-of-sales method. When a company has been operating

for many years, it may have built up its data of budget experience in terms of
the ratio of its advertising to sales. It may take last year’s dollar figure as a
base for this year’s advertising, projected to this year’s anticipated sales. This
method has tradition behind it, and it is convenient; it is subject to periodic
review in the light of sales. However, it looks backward; it may be perpetuat¬
ing the mistakes of yesterday. What steps are being taken in a test market to
see whether the company wouldn’t do better to spend a greater percentage of
sales than last year? Using past percentage as a base, the company may in¬
crease the figure for the coming year to recognize the increased cost of media
and production, as well as because they have more aggressive marketing plans.
The method of using a percentage of past sales as a base of considera¬
tion for next year’s budget is common.

The task method. This is a method very widely used. By this method,
the company gives itself a specific sales goal, asks what will have to be done
to help attain that goal, adds up the cost, asks whether it can afford the risk,
and says, "Let’s go—but let’s watch it.”
In speaking of the task method, Charles W. Mortimer, who rose
through the advertising and marketing ranks to the presidency of the General
Foods Corporation, had this to say:

The task method is built brick by brick; not pulled out of a hat, or
divined with a willow wand. . . . It is based on a concrete estimate of
the job to be done. It uses extensively past advertising experience—
all that is available—but never accepts any rule of thumb or past sta¬
tistical relation as a sufficient guide for expenditures without reexami¬
nation of the nature of the task and the most promising method of
 600 accomplishing it this year—not last year. It involves constant aware¬
Advertising
Management
ness of what the competitors are doing with respect to advertising
themes and expenditures, but it does not blindly follow the com¬
petitor’s program.
The only safe assumption to make in determining advertising expendi¬
tures is that each year—or campaign—involves a task that is new in
some important respect. Old measurements and old answers, accepted
uncritically, are not good enough.6

The task method represents the same spirit of enterprise, confidence

in judgment, and willingness to back up that confidence with every dollar at
their command that made most of the large advertisers of today out of the
small advertisers of years ago.
Most budgets are based on a mixture of the percentage-of-sales and
task methods.

Share-of-market method. Peckham developed the idea of setting

the budget in relation to the share of market of an old or a new product, as
follows:

First, for new brands:

All calculations are made in terms of its share of the market for that
type of product. If a new brand is a good product from a consumer
point of view, its share of market bears a fairly close relationship to
its advertising and promotion investment.
Advertising expenditures on a new brand must take the total adver¬
tising of the entire field into account. The advertising necessary to
introduce a new brand in the grocery field should represent a share of
advertising approximately twice that of the share of sales the new
product feels it can attain at the end of the two-year period. In the
toilet goods field, the advertising-share-of-sales relationship is about
one and a half to one.
As an example, let us say we have a new product in the grocery field.
The total annual business of that type of product is $30,000,000.

Two-year sales goal—10% of market, or $3,000,000

Total annual advertising in field 4,500,000
Annual advertising need, 20%, or 900,000

Next, for established brands:

6 Charles G. Mortimer, Jr., "How much should you spend on advertising,” in

Advertising Handbook, ed. Roger Barton (Englewood Cliffs, N.J.: Prentice Hall, Inc., pp.
113-15).
 Assuming that you keep your brand (and its resulting advertising ap¬ 601
The
peals) strictly up to date, the best insurance of maintaining or in¬ Manufacturer’
creasing your share of market is consistently to maintain your share Advertising
Department
of advertising at a point somewhat ahead of your share of sales.7

The advantage of this approach is that you deal with measurable quantities.
A shortcoming is held to be that it tends to keep you up with the pack, in¬
stead of encouraging you to get ahead in your profit margin.

Use of mathematical models. To apply the technology of quantita¬

tive problem solving to setting the budget, Weinberg presented an analytic
approach in a 125-page report published by the Association of National Ad¬
vertisers. It is too long and technical to present here, but his statement of the
problem is so lucid that we quote these excerpts:

1. How can the overall effectiveness of a company s past advertising

programs be measured?
2. How can the probable level of advertising expenditures required
to attain a desired future marketing objective be predicted?
3. How can the expected profitability of a future advertising program
be estimated?
4. What criteria may be employed to develop an optimal long-term
advertising program (i.e., an advertising program that maximizes
the company’s future profits) ?
5. What criteria may be employed to determine the point at which
"diminishing returns" makes an additional increment of adver¬
tising expenditure unprofitable?

Every business operates in four environments simultaneously. These

environments are as follows:

1. An economic environment
2. An internal environment
3. A competitive environment
4. An institutional environment

A company’s net profits are dependent upon not less than five sets of
factors:

1. The level of general economic activity, insofar as it affects total

industry sales

7 Based on addresses by J. O. Peckham, executive vice-president of the A. C. Nielsen

Company, before the Grocery Manufacturers Association, November 12, 1963, and before the
Toilet Goods Association, June 27, 1964.
 602 2. The level of total industry sales, a share of which will represent
Werbung
Management
company sales
3. The actions of the company’s competitors, insofar as they will de¬
termine what share of the total industry market the company will
capture
4. The actions of the company itself, insofar as they meet the actions
of its competitors and insofar as they affect the company’s profit-
sales relation
5. The structure of tax rates, insofar as they determine that fraction
of gross profits which will be available after taxes (i.e., the com¬
pany’s net profits after taxes)

Consider the factors outlined above. These factors reflect the four
basic environments within which the company operates. In order to
carry out a truly meaningful analysis of the strategic impact of adver¬
tising on the company’s net profits, it is important to consider each
of these factors simultaneously. Considering these factors individually
or independently or not considering all the factors can often lead to
erroneous conclusions regarding advertising contribution to the com¬
pany’s profits.8

This report is cited as an example of the advanced thinking in the quest to

determine the optimum amount to spend on advertising.

Empirical method. This method holds that the way to determine the
optimum amount to spend on advertising is to actually run a series of tests at
different levels of advertising. One such test was conducted by the du Pont
Company when it first introduced Teflon to the public.9 Daytime television
only was used for this test. Twelve test markets were used, in two flights of
tests, spring and fall. The advertising in each market varied, from zero to one-
half million dollars to one million dollars. The cost of the advertising was
matched against the sales.
No difference in sales was found between the markets that had no ad¬
vertising and those that had a half-million dollars in advertising, but there was
a significant sales and profit effect at the million-dollar mark. The product was
then introduced at that level of expenditure.
That still left the question of whether that was the optimum figure.
Would increasing it continue to increase profits? Subsequent multilevel tests
of higher expenditures involving 20 test markets were conducted, and in addi-

8 Robert S. Weinberg, An Analytical Approach to Advertising Expenditure Strategy

(New York: Association of National Advertisers, Inc., I960).
9 Malcolm A. McNiven, "Choosing the Most Profitable Level of Advertising: A Case
Study,” in How Much to Spend for Advertising (New York: Association of National Adver¬
tisers, Inc., 1969), p. 90.
tion, print media were tested along with television. The extremely high levels 603
The
did not prove more profitable. Manufacturer’
Here then was a test that proved how much was too little, how much Advertising
Department
too high, and at which point the advertising budget was most profitable. This
method takes great planning, ample funds for testing, and discipline in not
drawing hasty conclusions. But it shows what can be done.

Review Questions

1. Discuss the major responsibilities of ager. How does he differ from a

the manufacturer’s advertising de¬ product advertising manager?
partment compared with those of its
5. Describe and discuss each of the
full-service advertising agency. common methods of setting an ad¬
2. Describe some of the major patterns vertising budget.
of company organization of the ad¬
6. If you were asked how much adver¬
vertising function. tising money you thought would be
3. On what basis does an advertiser pay needed for launching a new brand
a creative group for their work? of a grocery product, how would
4. Describe the job of the brand man¬ you go about getting an answer?

Reading Suggestions

Barton, Roger, ed., Handbook of Adver¬ Association of National Advertisers,

tising Management. New York: Inc., 1969.
McGraw-Hill Book Company, 1970. Media Decisions, "The New Breed in
Frey, Albert Wesley, "Approaches to Media: The Product Manager," De¬
Determining the Advertising Appro¬ cember 1967, pp. 13—17. Also in
priation," in Speaking of Advertising, Kleppner and Settel, Exploring Ad¬
ed. by John S. Wright and Daniel S. vertising, p. 301.
Warner. New York: McGraw-Hill Obermeyer, Henry, Successful Advertis¬
Book Company, 1963. ing Management. New York:
Friedman, Lawrence, "A Variable Bud¬ McGraw-Hill Book Company, Inc.,
geting System For Consumer Adver¬ 1969.
tising,” Marketing Science Institute Payne, Richard A., The Men Who Man¬
Working Paper, 1970. age the Brands You Buy. Chicago-
Fulmer, Robert M., "How Should Ad¬ Crain Communications Inc., 1971.
vertising and Sales Promotion Funds Simon, Julian L., The Management of
Be Allocated," journal of Marketing, Advertising. Englewood Cliffs, N.J.:
October 1967, pp. 8-11. Prentice-Hall, Inc., 1971.
Kelly, Richard J., The Advertising Stansfield, Richard, Advertising Man¬
Budget. New York: Association of ager’s Handbook. Chicago: The Dart-
National Advertisers, Inc., 1969- nell Corporation, 1969.
McNiven, Malcolm, How Much to
Spend for Advertising. New York:
 VII
OTHER WORLDS
OF ADVERTISING
 Retail Advertising

There is more money spent for local newspaper advertising in the United
States than for all of television advertising, or for all of magazine advertising,
or for all of radio advertising. The fastest-growing classification of any
medium—national or local—is local television advertising. The fastest-
growing segment of radio advertising is that of local advertising,1 and by far
the greatest part of all local advertising is retail advertising, the world we
enter in this chapter.

Differences between National and Retail Advertisers

National advertising, as we have been speaking of it, refers chiefly to adver¬

tising done by a producer to get people to buy his branded goods, wherever
they are sold. Retail advertising refers chiefly to that done by local merchants
or service organizations, to attract customers to their local establishment for
the goods and services they have to offer.
But some firms combine both activities. The outstanding example is
Sears, which produces goods under its own name and trademarks, and ad¬
vertises them nationwide—making it one of the largest national advertisers;
Sears also has many stores which advertise under the Sears name in their
respective communities, and thus are local advertisers.
Many franchise operations use national advertising to spread their
reputations around the country, and local advertising to get the business of the
immediate neighborhood. The fact that both forms of advertising are used by
a single firm should not obscure the basic differences between national and
local advertising.
In national advertising, the manufacturer says, "Buy this brand
product at any store you can." The retail advertiser says, "Buy this product
here. Better come early!"
In national advetrising, it is difficult to trace the sales effect of a
single insertion of an ad, and to trace the effect of a series of them takes time
and is difficult unless it runs exclusively in one medium. In retail advertising,
a retailer can usually tell by noon the day after an ad appeared how well (or
poorly) it is doing.

1 1970 figures. See p. 121.

607
 608 A national advertiser speaks to a wide and distant audience. The retail
advertiser works in the community in which he advertises. He knows the
Worlds of
Advertising people, their life styles, their tastes.
A woman looks at national advertising whenever she happens to come
upon it—in newspapers, magazines, television, or while listening to the radio.
She reaches for her newspaper as a matter of ritual to see what is the latest
that the department stores are offering in styles and values, and what the
supermarkets are featuring.
The national advertiser has chiefly one product or one line of products
to sell over a period of time. The retailer is faced by a relentless river of new
styles and offerings he wishes to sell within a week, generating a great sense
of urgency in the advertising department. It’s a fast tempo.
Retail newspaper rates, as we have previously discussed, are lower
than national rates—one of the factors that have given rise to cooperative
advertising.

Classes of Retail Stores

Retailing covers a wide variety of store and service operations. There is much
shifting and overlapping among them. "Drug stores’’ sell radios, "food
stores’’ carry garden furniture, and "discount” department stores sell food.
For purposes of understanding the retail advertising problems, however, we
consider the chief retailing operations to be:

—Traditional department stores

—Chain department stores
—Discount stores
—Supermarkets
—Specialty shops
—Catalogue merchandise stores

Each type of operation has its own pattern of merchandising and advertising
operation. We consider each separately.

The Traditional Department Store

This refers to stores selling fashion apparel for different members of the
family, along with general merchandise. It is arranged by departments, with
individual clerks assigned to each. These stores emphasize customer service
in other ways, too—with deliveries, dressing rooms with fitters’ services, ease
of returning merchandising, ladies’ lounges, restaurants—all with a view to
creating regular clientele. About 50 percent of their volume is on credit. 609
Retail
Most of these stores began with what is now the "downtown” or "main” store, Advertising
and then built branches in the suburbs.
These are the stores we usually have in mind when we say "depart¬
ment stores”; we label them here as traditional department stores to distinguish
them from chain department stores, which have a different advertising outlook
and operation, as do discount stores and specialty shops.

Types of Advertising

The kind of advertising done by a traditional department store stems

directly from the kind of store the management wishes to operate, the type of
trade it seeks, and the range of merchandise it plans to offer. This affects
everything connected with the operation—store location, decor, degree of em¬
phasis on latest styles, and types and price range of merchandise. It affects
the advertising. All advertising of all stores has one thing in mind—to sell the
specific article advertised, and to bring in store traffic, with the basic store
policy as its frame of reference. Such advertising may be any of three types,
or a combination of them.
Promotional advertising refers to an advertisement devoted to a spe¬
cific product, such as dresses, bedspreads, lamps, china. Such advertisements
reflect the efforts of a buyer to make a particularly advantageous purchase in
terms of style, variety, and price. Promotional advertising can be that of in¬
dividual items, or it may be devoted to goods of one particular department.
Departmental advertisements are often built around a theme designed not
merely to sell the particular items advertised, but to establish that department
as a headquarters for such goods.
Next, there is the advertising of sales, including store-wide special
sales events. Most stores have storewide special sales at the end of each season
or on some annual or special promotional basis, such as Washington’s Birth¬
day, Anniversary Sale, Midsummer Sale. Special advertising will be prepared
to move merchandise that may be growing stale, to try out new merchandise
for the coming season, and above all, to generate traffic. There will also be
departmental sales during the year to which advertising will be devoted.
Most traditional department store advertising is a mixture of the fore¬
going types.
Then there is institutional advertising, designed to give the whole
store a lift in the esteem of the public, above and beyond its reputation for
good merchandising. It may be to help some community project; it may be
something the store is doing to bring pride to the community; it may be some
advice to help a woman in her shopping knowledge of products. It makes no
specific price offerings of merchandise.
Institutional advertising, as a rule, is a one-shot ad, created only when
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tion the taste of today demands. Mai) order or eaB 42!-
4500 |eB other business cali 42I-59GGS.
UN-REAL FUR RU&S can be washed or dry cleaned, take
wear and tear better than any real fur could. I. Coddly
soft winter white rug styfed to look like a Polar Bear, 2.
Danse shaggy black rug styled to rook like Black Bearskin.
3. Scatter rug styled to look like Cross Fox pehs. Or create
other favorite fake fur looks: Lapin, Simian, White Ermine,
Red Fox, White Bear, Beaver or Flokati. AH styles available
in 30*54", $20; 4*5'. $35: 5*7', $60; or 5*?’, $80. Famous-
Barr Rugs, all stores except Crertwood.
SPECIAL PURCHASE! SAVE ON BLOOMCRAFT
FAKE FUR FILLOWS that make believe as rabbit, sguirtel,
bear and many other favorites. Choose long or short pile.
In white, natural, brown or black. Fabrics include rayon,
acrylic and modaorylie, $7.49 each, 2 for $14. Famous-
Ban- Draperias, all eight stores.

A Promotional Ad

Designed to sell the specific merchandise pictured, as well as

to attract buyers to the department.

610
Today & Saturday! Last day Saturday! Today & Saturday! Last day Saturday!
Men’s permanent press Irregulars of famous make Junior blazers styled by a Irregulars of coordinated
dress and casual slacks sheer seamless pantihose famous maker in new Spring knit tops, skirts, pull-on
from a famous maker proportioned to fit fabrics and colors pants for misses

SALE 4.99 SALE 59' SALE 14.99 SALE 4.99

REGULARLY *8 TO *13 IF FIRST QUALITY 2.50 ORIGINALLY *18 TO *24 IF PERFECT *9 TO *18
Jr. Sportswear, 3rd floor, Macy’s Herald Square Budget Sportswear, 2nd floor, Macy's Herald Square
Men's Store, 2nd floor, Macy's Herald Square Hosiery, Street floor, Macy’s Herald Square
and the Macy’s near you and the Macy’s near you
and the Macy's near you and the Macy’s near you

Last day Saturday! Today & Saturday!

Italian Provincial style Lees Acrilan® acrylic pile tip
3-position recliner; wood sheared broadloom installed
trim, vinyl upholstery over sponge rubber padding

SALE ‘99 SALE 8.88„.,d.

ORIGINALLY *139 REGULARLY 11.99
Furniture, 9th floor, Macy's Herald Square Broadloom, 7th floor, Macy’s Herald Square
and the Macy's near you and the Macy’s near you

Today & Saturday! Last day Saturday!

Sale! Seconds of no-iron Boys’ famous-make casual
percale sheets in solid flare pants and jeans,
fashion colors wash and wear, sizes 8-20
50% polyester, 50% cotton
72x104 twin flat, 39x76 twin fitted:
if perfect 725-7.50 each, sale 2 FOR *5
SALE 4.99
81x104 double flat, 54x76 fitted: REGULARLY 6.50 TO *9
if perfect 825-8.50 each, SALE 2 FOR *6 Boys, 5th floor, Macy’s Herald Square
42x36 cases, if perfect 21*5, SALE 2/*3 and the Macy’s near you
Sheets, 6th floor, Macy’s Herald Square
and the Macy’s near you

Last day Saturday! Today & Saturday!

Color TV with 23" picture Irregulars of Leeds zipped
measured diagonally, plus luggage at 35%-55% less
stereo phono, AM/FM radio than if perfect prices

SALE 949 SALE s9 to 16

REGULARLY *749 IF PERFECT '14 TO *36
Television, 5th floor, Macy’s Herald Square Luggage, 5th floor, Macy’s Herald Square
and the Macy's near you and the Macy’s near you

Today & Saturday! Last day Saturday!

Irregulars of men’s famous Electrophonic-Garrard stereo
brand knit shirts with crew component system with
necks or button plackets speakers and dust cover

SALE 2.99 SALE 99.99

IF PERFECT *6 to *8 REGULARLY 139.99
Plus *3 delivery in Macy*s UPS area
Men's Store, Street floor, Macy's Herald Square
and the Macy’s near you Stereo, Macy’s 5th floor, Herald Square
and the Macy’s near you

Last day Saturdayl Today & Saturday!

Boys’ short sleeve crew
Shop today & tomorrow! See 3-speed touring bikes for
neck striped knit shirts these sales and hundreds and men and women, Sturmey
Archer shift, 26" tires
for sizes 8 to 18 hundreds more. See tremendous
SALE 2 for 5.99 bargains at all 14 Macy s. SALE 54.99
3.19 EACH, REG. ‘4 EACH REGULARLY 69.99
Boys, 5th floor, Macy's Herald Square
and the Macy’s near you
All Macy s open late tonight. Bikes, 5th floor, Macy’s Herald Square
and the Macy’s near you
(not at Jamaica, Flatbush, Parkchester)

A Store-wide Sales Ad
 the national
park service
and
tamous barr

CONCERT with the

saint louis
j symphony
orchestra
On Sunday afternoon, May 28, on the
Mississippi Riverfront, Maestro Walter
Susskind raised his baton and suddenly
... in the life of the Saint Louis Sym¬
phony . .. there was a new proscenium
arch. The Gateway Arch framed the
world-renowned orchestra and the cele¬
bration of the Centennial of the Na¬
tional Park System was underway. This
free concert and four additional ones
are sponsored by the Park Service and
co-sponsored by Famous-Barr as a gift
of music to the people of greater St.
Louis. Tomorrow night at 8:00 the
music of Mozart will be heard, and on
three successive Saturdays the free
concerts will continue. A distinguished
orchestra, with distinguished conduc¬
tors and soloists, playing in a dis¬
tinguished new setting, form a wel¬
come addition to the summer sounds
of Saint Louis.

PROGRAM II
Saturday, June 3 at 8 p.m.
(Ram Date—June 4 at 8 p.m.)
George Cleve, Conductor
Max Rabinovitsj, Violinist
MOZART PROGRAM
Overture to "The Marriage of Figaro"
Symphony No. 40 in G minor
Concerto No. 5 in A major for Violin &
Orchestra
Max Rabinovitsj, Violinist
Symphony No. 34 in C major

PROGRAM III
Saturday, June 10 at 8 p.m.
(Rain Date—June 11 at 8 p.m.)
Leonard Slatkin, Conductor
AN AMERICAN PROGRAM
WM. SCHUMAN Circus Overture
BARBER Second Essay for
Orchestra
PISTON Symphony No. 2
COPLAND A Lincoln Portrait
SOUSA The Stars and
Stripes Forever

PROGRAM IV
Saturday, June 24 at 8 p.m.
(Rain Date—June 25 at 8 p.m.)
Walter Susskind. Conductor & Pianist
Betty Allen, Mezzo-Soprano
DVORAK PROGRAM
Carnival Overture, Op. 92
Gypsy Songs
Betty Allen, Mezzo-Soprano
Walter Susskind, Pianist
Symphony No. 9 in E minor, Op. 95.
from "New World"

PROGRAM V
Saturday, July I at 8 p.m.
(Rain Date—Julv 2 at 8 p.m.)
Walter Susskind, Conductor
BEETHOVEN PROGRAM
Symphony No. 9 in D
minor, Op. 125, "Choral" Soprano
Lorna Haywood, Soprano
Florence Kopleff, Contralto
Jeral Becker, Tenor
Samuel Timberlake, Bass
Cosmopolitan Singer & Festival Chorus,
Helen Louise Graves. Director

^amOus • b^rr

An Institutional Ad

Designed to get good will, rather than to sell specific merchandise

there is something to say, or it may be a series of occasional ads devoted to an 613
Einzelhandel
overall theme. The results are hard to trace. Most stores rely on their range Advertising
of merchandise and the character of their advertising to help them establish
an institutional image.
Much retail advertising is a blend of the foregoing forms.

A Typical Organizational Structure

At the head of the typical large department store will be the president,
who makes the final decisions about all budgets, in addition to his other cor¬
porate responsibilities. There may be a series of senior vice-presidents, includ¬
ing one in charge of the merchandising of, let us say, soft goods; another in
charge of the merchandising of hard goods; a third in charge of the merchan¬
dising of the budget store. The number of vice-presidents and the scope of
their duties varies by the store.
Each merchandising vice-president will have under his wing a num¬
ber of divisional merchandising managers, each of whom is responsible for a
number of related departments headed by buyers, who are responsible for the
profitability of their respective departments.
There will also be a vice-president, variously known as the publicity
director, promotion director, or public relations director, who is in charge of
all promotional activities, including advertising, public relations, displays, and
signs. The advertising department, under him or her, will be in charge of an
advertising manager.

The Department Store Advertising Department

The functional structure of most department store retail-advertising

departments is something like this:

Advertising manager
Manages total advertising operation
Coordinates all the requests for space in a given period, and de¬
cides on space and paper for each department and each week
Copy chief
Writers (working directly with the buyers)
Art director
Staff artists (producing virtually all art work)
Production manager
Staff that handles print production
Head of direct mail
Head of radio and television
The Publicity and Advertising Department
of a Traditional Department Store

Vice President
Director of Publicity and Advertising

Duplicating Special Events and

Display Director
Sign Shop Public Relations
I
Window
Courtesy: Famous-Barr, St. Louis
Assistant Display
Advertising I
Manager Interior
Display
Copy Chief
The advertising department will also include an accounting department, one
of whose duties is to make sure manufacturers contribute their agreed-upon
Copywriters
allocations of cooperative funds.
The number of people in each department varies with the volume of
Art Director
advertising that the store places; the departmental chart may have many sub¬
classifications. On the other hand, in smaller stores one person may wear
Layout and Finish
several hats.
Department stores do not as a rule use advertising agencies for their
Photographic Studio
general advertising, first of all because the nature of retailing requires the
close working together of a number of people who live with the business
Production Manager daily and have to act fast, and also because the stores get low local-newspaper
rates, which do not include agency commissions. Stores usually handle all
Direct Mai I phases of creating the advertising under one roof, although they may go out¬
side for TV production or special art work. Some stores use advertising agen¬
Radio and TV cies on a fee basis to handle special projects.

Factors Affecting the Advertising Budget

Department store budgets are affected by a number of prime factors,

as cited by Davidson and Doody, as follows:

1. Type of merchandise. Stores selling luxuries and nonessentials

(jewelry, perfume) must spend a higher proportion of sales for
advertising than do those dealing with day-to-day necessities.
2. Age of store. Stores recently opened require greater advertising
expenditures than long-existing ones.
3. Location. Stores in prime locations, paying high rent, usually spend
less than stores in poorer locations that have to pull in traffic.

614
 4. Competition. The appropriation is affected by the amount of ad- 615
vertising done by competition. Adltiismg
5. Store character. Highly promotional stores tend to have higher ad¬
vertising expenditures.2

There are many demands for the use of funds within a retail opera¬
tion. In addition to funds for advertising expense, the top management must
decide how much to allocate for buying expense, selling expense, display
expense, and general store expense.
Once the funds for advertising have been decided upon by top man¬
agement, the vice-president in charge of advertising and publicity joins in
deciding how the funds are to be allocated to direct mail, radio and television,
general institutional promotion, and contingencies.
But the major portion of the total budget will be devoted to news¬
paper advertising. These funds are then allocated to the general merchandis¬
ing managers of the respective broad areas, such as hard lines, soft lines, and
budget-store merchandise.
At this point there is usually a meeting of all divisional heads and
buyers, along with the advertising director and publicity people, to establish
long-range merchandising and advertising programs for the year, such as the
annual store events. Usually this is set up in terms of a fall and winter
calendar.
2 William R. Davidson and Alton F. Doody, Retailing Management, 3rd ed. (New
York: The Ronald Press Company, 1966), p. 639, excerpted.

FALL PROMOTION CALENDAR

Month Week Last Year (Actual) This Year (Planned)

August 1 Back-to School Back-to-school mailer

direct mailer
2
A typical sales promotion calendar show¬ 3
4
ing the variety of store-wide sales events Sept. 1 Designer Week Career Girl Fashion Show
2 Fashion Shows & Luncheon
scheduled for the period. 3
4
5 Storewide Clearance Storewide Clearance

October 1
2 Anniversary Sale Anniversary Sale
3
4
November 1
2 Xmas Catalog
to Charge Customers
3 Thanksgiving Sale
Xmas Catalog to
Charge Customers
4 Thanksgiving 3-day Sale

December 1 Open major Xmas Shops

downtown
2 Open Xmas shops Open all Xmas shops
Branch stores
4
5 Post Xmas Sales & Post Xmas Sale and
Clearance Clearance

January 1 January White Sale Event January White Sale Event

CL

3 Annual Remnant Day Sale Annual Remnant Day Sale

Courtesy: Famous-Barr, St. Louis 4 Warehouse Store Furniture
Clearance
 626 These general merchandise managers will then decide how to allo-
0ther cate the funds among the divisional merchandise managers reporting to them.
Advertising The divisional merchandise managers supervise groups of related departments.

The Retail Advertising Schedule

Six weeks ahead. About six weeks prior to the beginning of a given
month, the divisional merchandise manager asks his buyers to submit requests
for advertising space for specific items. He then reviews all the requests and
decides which to accept and which to reject. Although the buyer may request
a 1,200-line ad, the divisional merchandise manager may use his discretion to
increase or decrease the size of a given ad, depending on how important he
believes the ad to be, and how the ad relates to the requests of other buyers
in the division.
This whole process takes place under continuous time pressure. The
advertising department would like more lead time, because then they could
produce better ads. The buyers clamor for a shorter lead time, because this al¬
lows for more accurate interpretation of customer demand and therefore
better buying decisions.
After the divisional merchandise manager has reviewed all the buyers
requests, and has adjusted the total month s advertising to conform to the
budget he has been allocated, he then submits his divisional advertising pro¬
gram for the month to the advertising manager.
The advertising manager coordinates the requests from all the divi¬
sions of the store and produces a master plan for each week of the month. This
master plan indicates which ads will run each day of the week, and it even
specifies the newspaper in which the ads are to appear. This is a very im¬
portant step in the entire process, because the store management has pre¬
determined criteria relating to the use of newspaper space by day and by
paper. For instance, a buyer may prefer to run an ad in the Wednesday eve¬
ning paper; but the advertising manager may have to run it in the Thursday
morning paper in order to preserve balance by day and by paper, so that the
customer is continuously exposed to the store s advertising efforts. Everyone
concerned in the buying and selling organization gets a copy of the master
plan.

Three weeks ahead. Three weeks before the actual running date of
an ad, the buyer submits to his divisional manager a fact sheet giving all the
information that will be needed by the advertising department. WTen ap
proved by the divisional manager, it is sent to the advertising department,
along with samples or photographs of the goods to be advertised. The layout
man draws up a layout and submits it to his supervisor for approval. Using
the approved layout and the buyer’s fact sheet, the copy man prepares the
necessary copy and submits it to his supervisor for approval. At this point,
 617
311,014
Advertising Retail
Yellow Copy to Advertising
Advertising
Pink Copy
Blue Copy
to Sharpstown
to Pasadena
FACT SHEET
White Copy to Department
Department Name

FACT SHEET DUE

IN ADVERTISING ITEM This is sheet used
Style or Model #.
14 DAYS IN by department

□ n □
ADVANCE OF store buyers to
Has item been If irregulars
RUNNING DATE! Advertised Before? Yes No When
check here supply necessary
CLASSIFICATION OF AD: □ A □ B
information for
IF COPY ccn't be repeated . . . tell us why?
the preparation
of their
advertisements.
What information should be in the HEADLINE?

Yes No
Mail orders?
Yes No
Phone orders? £

Is AD part paid?....... Merchandise to be sold at: □ Downtown Sharpstown □

Pasadena □
Vendor paid?. Comparison prices:*
Internal load?. Regular . Special purchase! SELLING PRICE
(how much, % or $. .. .) Was . Compare at

Should item be a: * Refer to your copy of the Houston Better Business Bureau
(Circle one) "Advertising Answer Book." __

Cut Box Liner

If item is on SALE . . . what kind of a sale is it?
ART INFORMATION (Reductions from stock? Special Purchase and circumstances? Competitive action?

Seasonal promotion, etc.)

Has item been

sketched or photo-
Yes No
graphed before?|

Attach mfs. photos if any! SELLING POINTS (List in order of importance)

1.
PICK UP DATE for cuts
IF OLD ART can’t be 2.
repeated . . . tell us why?

3 .
4.
What credit plans
should be advertised COLORS:
for this item:
(Circle appropriate ones:)

Fabric (fiber content percentages) or material:

FBA 30-day charge

Lay-crway

"Few Pennies a Day" Sizes or dimensions:

Special terms _

Approved: DM. DMM

Order your display signs now!

Courtesy: Foley’s, Houston

 618 everv store has its special controls to verify the accuracy of comparative price
Other . J 1
Worlds of claims.
Advertising The next step is to submit this layout to an artist who will prepare
the finished artwork. The finished artwork and the copy then go to the pro
duction department. Here a typographer marks up the copy for typesetting,
which is done by the newspaper. The approved copy and the finished artwork
then go to the newspaper, which will set the type and rush the copy proofs
back to the store to be approved by the buyer for accuracy. In the meantime,
the newspaper is making the plates of the art work. The store will then re
ceive a final proof of the completed advertisement as it is to appear in print,
for final approval.

famOusbarr AUTHORITY FOR THE USE OF A VALUATION

Dept. No.

FORM 790 (3-70) Date

□ Copy □ Signs □ Tags ( Quan.)

Please check
Name of Promotion
NOTE" ADVERTISING COPY SIGNS AND HANG TAG REQUISITIONS, AND THIS FORM MUST BE APPROVED BY SERVICE REVIEW AND SUBMITTED
TO THE ADVERTISING DIRECTOR NO LATER THAN TWO (!) WEEKS BEFORE THE AD IS SCHEDULED TO RON OR SIGHS OR HAN i TAOS
ARE TO BE USED UNLESS SPECIAL APPROVAL HAS BEEN RECEIVED FROM THE GENERAL MERCHANDISE MANAGER OR MRS. VAN de ERVE.
COMPARATIVE PRICE
Qu an ti ty o f Date
Term s to be Date of return to P romotion
Mdse, on ntermediate f Perfect Comparabl e Other Price
regular Price Regular Original
hand Ad Price Price please explain)
U sed Item and Substantiating Record and Information Price Price M ark do wn
for event p ri ce

REMARKS:

My signature verifies that the above information is correct_

(Buyer)
and/or General Merchandise Manager _ Advertising Director
Divisional Merchandise Manager_

Courtesy: Famous-Barr, St. Louis

Valuation Verification Form

Before a buyer can run an ad at a sale price, or make a comparative price statement,
he must present such form, supporting those claims, for approval.
 The ad runs. As soon as the ad appears in the local paper, the execu¬ 619
Retail
tives in the store begin to watch the advertised items for selling results. Cus¬
Advertising
tomer comments are listened to carefully, but the most important indicator is
the end-of-day sales figure. If an advertised item begins to sell rapidly, the
store executives may decide to order additional quantities of the goods, on the
assumption that the item will continue to sell well in the coming weeks. They
may decide to repeat the same ad, often in a competing newspaper. This gives
the retailer an opportunity to reach customers who do not read the first paper.
In the meantime, the manufacturer may have backed up the advertise¬
ment by holding predetermined quantities of the advertised merchandise. As
soon as he gets the urgent phone call from one of the stores, he can immedi¬
ately ship more goods, by air, if necessary.
An extremely successful advertisement may be repeated over a long
period of time, as long as there is a demand for the goods.
Each store will have its own routine for handling the steps in between
budget and appearance of an ad, but in all instances the operation is a fast-
moving one, relying for its success on good coordination and good timing.

Cooperative Advertising

Although we have discussed cooperative advertising allowances in

the past, chiefly from the manufacturer’s point of view, it may be opportune
to review some of the advantages and disadvantages from the store’s view¬
point.

Chief advantages:

—It helps the buyer stretch his advertising capability.

—It may provide good artwork of the product advertised, with good
copy, in mat form—especially important to the smaller store.
—It helps the store earn a better volume discount for all its adver¬
tising.

Cooperative advertising is best when the line is highly regarded and is a style
or other leader in the field.

Chief disadvantages:

—Although the store may pay only 50 percent of the cost, that sum
may still be out of proportion from the viewpoint of sales and
profit.
-—Most manufacturers’ ads give more emphasis to the brand name
than to the store name.
 General Electric 16.6 cu. ft. 2 door refrigerator-freezer
Features adjustable shelves, extra deep door shelf, twin
vegetable crispers and roll out casters. Freezer holds 154 lbs.
Includes juice can dispenser, jet freeze ice compartment
and ice'n easy service. Color $10 more. Yes, we trade!

319.95
Caloric, perfectionists
in continuous clean
gas ranges
30 inch Caloric double-decker gas range, 2 ovens clean as you cook
Double your pleasure, cook two birds at one time ... Continuous clean panels
in both ovens do the cleaning while you're cooking. Built for maximum con¬
venience and great tasting dinners. It's the only range with a removable lower
broiler door. Exclusive unitized top burners for easy cleaning. Improved front
controls click for high, medium, or low. It's such a pleasure cooking creatively
with this deluxe range. All features designed with you in mind. Clean look,
streamlined, plenty of space between burners. Coordinated colors $10 more.

may co major appliances 714, 721,729 - all 13stores

439.85
use one of our convenient credit plans

G.E. 2-speed automatic washer with Filter Flo system

2 wash and spin speeds for perfect handling of various fab¬
rics. Two cycles for normal or delicate loads. Filter Flo system
continually recirculates wash water to effectively filter lint
and also disperses detergent automatically. Positive water
fill and hydropower wash action.

179.95

G.E. matching gas dryer with three temperature selections

3 temperatures plus permanent press. Variable time dry
control, large family capacity porcelain enamel drum and
lint filter. Price includes delivery, install. Yes, we trade.

front mounted controls uniticed top burner energy system . tri-settop burners continuous clean removable panels
Ideally located at front of cooking Exclusise Caloric system makes End guessing at heat settings. Clicks Continuous clean panels heated
surface, easy to read and never hot cleaning the surface quick and tell high, medium, and losv posi¬ during cooking causes stains and
to the touch. easy. No tubing, wiring, braces to tions. Improve cooking control- spatters to evaporate.
hide spillovers. Porcelain enamel.

All May Co stores open every Sunday 12 noon to 5 p.m.

except Downtown L.A.

S2Sl,NJS.‘.WiAHJl!E ' C,ENSH,W • UKEWOOO • LAUREL PLAZA • EASTLAND • SO. BAY • SAN DIEGO ■ BUENA PARK • TOPANGA PLAZA • WEST LA • WHITTIER • SO. COAST PLAZA • ARCADIA • SAN BERNARDINO • MONTCLAIR • CARLSBAD • OXNARD
ORDER DAILY 8:30 TO 6 P.M. USE THE TOLL FREE NUMBER FOR YOUR AREA • Mi 6-3535 • Or 6-2292 • Ol S-0193 • Ne 57171 • Ki 2-5666 • S! 2-5000 • 0 MI 61 • Gi 2-5360 • Tu 4-5111 • 621-2911 • SAN DIEGO 297-2511 • IAS VEGAS 364-2794
MAVCO

A Department Store Cooperative Ad

Featuring nationally advertised appliances of different manufac¬

turers, at an attractive price.
Manufacturers’ ads cannot have the community flavor and the style of the 621
Einzelhandel
store ads. Retail stores get far more offers for cooperative advertising than
Werbung
they can possibly use. However, if the merchandise is what the buyer wants,
and if the price is right, he will seek a cooperative advertising allowance.

Chain Department Stores

We next meet the chains of department stores that each operate under one
name—such as Sears, Montgomery Ward, J.C. Penney. These may be national
or regional in scope. They concentrate on the middle-range price level and
good quality of all the goods they handle. They tend to go in for the "solid”
type of styles, rather than high fashion, and carry a higher percentage of
durables than do the traditional department stores. Most of their products bear
their own label.

Sears RADIO COMMERCIAL

NATIONAL HARDWARE WEEK SALE 60 Sec. Live Version

LAWN AND GARDEN EQUIPMENT

Stock #2537, 29204-5, 3401-2, 35187, 13-3-72-32-60

28533-36, 60055-56-57

ANNCR: National Hardware Week is Sears greatest hardware sale

event of the Spring. So, if you^ve been looking for

an excuse to buy that special power tool, or get started

on home improvement... stop looking! Come to Sears

National Hardware Week Sale. You'll find fabulous

savings for the professional, the home craftsman...

there's something for everyone. You'll see terrific

values on power tools, hand tools, paints, electrical

needs, work clothes, plus many home improvement items

on sale during Sears National Hardware Week. And you

can charge your purchase on Sears Revolving Charge or

use Sears Easy Payment Plan. Save big during Sears

National Hardware Week Sale...save on such values as...

great items from the Suburban Shop. Lawn and garden

tractors, roto-spaders, gas chain saws and gable roof

lawn buildings... plus Sears exciting new shredder-bagger

that shreds leaves, hedge and tree trimmings for easy

disposal without burning. Stop by the Suburban Shop now

Courtesy:
during Sears National Hardware Week Sale and save on
Sears, Roebuck & Co.
spring lawn clean-up and gardening values. Sears,

Roebuck and Company, _.

(address )

46
 622 Because they control their own production, they can plan all their
^ ^er merchandise programs, including special sales and special offerings, well in
Advertising advance. All the advertising material for each part of the year is prepared
centrally—including newspaper ads, radio scripts, TV spots, store signs, and
direct mail. It is then available directly from the home office, or from the
regional office, upon requisition by the store. In such operations, the mer¬
chandising manager may decide to feature children’s apparel during the
30-day period before Easter—and all the advertising will be prepared for that
event. Stores located in warmer climates may decide to run this particular
children’s ad four weeks prior to Easter, while stores in the northern states
may prefer to run the ad ten days prior to Easter. Once this decision is made,
the advertisement has to be positioned in the local papers, signs and in-store
displays have to be requisitioned, and salespeople must be advised so they
will be knowledgeable about the advertised goods.
Although chains may be national, the stores are billed at the local
rate—the rule being that if an ad appears over one name, it is so eligible.

Discount Stores

The fastest-growing form of retail outlet is the general merchandise discount

store, whose volume is now 50 percent greater than that of department stores,
with the difference in sales between them ever widening. Chief among such
mass merchandisers are K Mart (Kresge), Gibson Products (Zayre), and
Woolco (Woolworth). A discount store is one whose only claim to patronage
is low price. These stores operate on a smaller markup than do department
stores, with low-cost mass-buying of a limited variety of numbers in a line,
and fast turnover for their profit. Many shoppers who go to a department store
for their latest apparel will go to a discount store to buy those staples where
the best price is the inducement.
Some discount stores specialize in one line, as in the case of a furni¬
ture store that uses a warehouse full of furniture as its showroom; a buyer can
select his furniture and take it right out in his own car, if he can carry it, or
he can arrange his own trucking if needed. There is no waiting for deliveries,
the buyer can see exactly what he is getting, and the prices are the lowest in
the area, as a result of the low operating costs.
Discount stores will have highly streamlined, tight-budget, central ad¬
vertising departments, operating on a tight time basis. Newspapers, TV,
mailers, and radio are all used.

Supermarkets

The largest type of retailing operation in the United States is the supermarket,
which in 1970 did a volume of $63 billion, compared with discount stores
($24 billion) and department stores ($16 billion).3 Their chief advertising 623
Retail
activity centers around their weekly food specials, which fill the newspapers Advertising
Wednesdays and Thursdays. Many are heavy users of radio and TV, also.
Most of these stores are parts of regional or national chains, and their
advertising as well as merchandising activity comes from a central office. In
the case of one large regional chain, the main office handles the buying and
scheduling of media, handling the paper work involved in the cooperative
advertising, and the creation of the print ads and commercials, chiefly through
their own staff of writers and artists, and radio and TV producers. Of all the
areas of advertising where work is done under pressure, none involves more
pressure than getting out-the weekly newspaper advertisements. The adver¬
tising department is often one of the subgroups representing marketing ser¬
vices, along with sales promotion and store design and decoration.

The Quest for the Steady Customer

Although price is the main feature in discount stores and super¬

markets, the fact is that no store could survive if people came in to buy only
the very low-priced special advertised. And no store could reduce its overhead
and improve its margin of profits over the years if it did not develop a follow¬
ing of shoppers who would automatically drive to the store any time they
planned any shopping, and do most of their shopping there.
The best way of acquiring such a steady following is by earning the
reputation of being a reliable store where you get good value for the money.
One technique for helping this image is used by Hills Supermarket, who inter¬
spersed their supermarket price ads with institutional ads such as the one
on page 625, "All about roast beef,” which was followed by similarly
informative ads such as All about chicken, ’ All about veal, All about
peaches.” Each offered an informative leaflet on the subject.
In his letter on this campaign, George Pittel, vice-president of Hills
Supermarkets, reported:

For the first six months of the campaign, we ran a full page of the
institutional ad each week, along with the regular price ad. After the
first six months, we ran an ad once every two weeks for about four
months, and then once every three weeks.
Within two weeks of the start of the campaign, there was a 3% in¬
crease in sales, a slight increase in customer count, and an 8% increase
in the average customer sale. The sales increase continued the next
four months and averaged between 8% and 10%, with about a 10%
increase in the average customer sale. An increase in average customer
sales means people are buying more at your store, and that is sig¬
nificant.
We distributed about 4,000,000 brochures covering about 26 subjects.

3 Discount Merchandiser, June 1971.

 stock up at hms Melmac Dinnerware
39.
Per place setting piece.
Details at your hills

Dill Pickles Del Monte Sale

All Crisp 'A-Cial.
Kosher Jug •Sweet Peas 17-oz. • Cream Com 17 oz.
Campfire Marshmallows 4 i/L S1 •Peas&Oamrts leoz • Whole Kernel Com -17 oz.
Cracker Jacks 3^" 29'
Old Dutch Yellow Mustard
Hanover Pork & Beans
3.V2 22°
3 ££• S1
Yellow Cling Peaches Sliced
or Halves 3 Is 89
Castaway Cold Cups 100 59'
7-OZ. Of
r.% Hitts Health & Beauty Aid Values t

Hills Towels
Yellow, Pink
White
giant
rolls
Colgate Toottinasle Hair Spray
Figaro Thrown Olives MA»OAMILLA JAR 49'
Figaro Stuffed Olives ttAHZANblA 3 2ARS 1 59^*^e°Z Wo'nderiu, 2^ 89

C&B Hamburger Relish 2 :^”49c

Jeri Mixed Nuts PEANUTS SF 69'
Heinz Barbeque Sauce BTUZ 39' Modess Napkins
Prell Shampoo
Aluminum Foil Reg. or $^2Q pkg.
QQ° i6-02 Super °*
Diamond
Standard W rolls
^ 1 93 «■
White Rock Soda DtFOSfT 3 K? 89'
25c Off PUnCh reraGM
5-LB. 402'0Q 6 i Scope Mouthwash 51.19 Q-Tip Cotton Swabs <£&* 85'
Hills Fruit Drinks 4SSU1 LiDial Deodorant c« 75' Tany a T anning Butter S?z 99c ^
Hills Napkins r5oow33'
Wise Potato Chips Sf 65'

Dixie 9” QCIO pkg.

Everyday of 150
lliisV 16-1 16’2
P Valuable Coupon

M KiH
Toward the Purchase of One Sparky yj'' Toward the Purchase of Three 9-oz. Pkgs.
Wise Two Sums KS 65'
Cocoa Puffs, Trix
Coffee Mate
O&C Potato Stix 2«k?21c
89' 20 ug Briquets I
1 i and Lucky Charms
1 limit one coupon per family. Good tiH Sat., May 23. ■ # Limit one coupon par family. Good till Sat.. May 23.
A msec Oval Sponges Sa. 39'
Hills Facial Tissues 2PS39' L^jj.iii.i.i,ii|..iiinn.i4i',pis Coupon Value 25c ^

TO SAT., MAY 23rd. WE RESERVE THE RIGHT TO (JMiT QUANTITIES.

A Typical Supermarket Advertisement

Featuring low prices of nationally advertised brands and of

the store’s own house brands.

624
 ✓

Rib Roast,
explained.
Do you know what a "First Cut Rib Roast is? Do you Which is about perfect, our butchers say.
know what texture the meat should be? And what color the fat Firm white fat. Plenty of marbling. Now you know your
should be? And how much marbling to look for? Rib Roast will cook evenly. Without getting dried out in the
Don’t you think you should know what makes a tasty, least.
juicy, tender, easy-to-carve Rib Roast, tasty, juicy, tender and
easy to carve? Ribs, how many?
We do. And we’re going to tell you. A Rib Roast starts out with 7 full ribs. At Hills, we cut
this into a 3-rib roast and two 2-rib roasts. A "First Cut Rib
Rib Roast, what is it? Roast” is the first 3 ribs. It may cost you a little more, but that’s
Rib Roast, also known as Standing Roast, also known as because you’re getting more solid rib eye and less waste.
the "King of Roast Beef," can’t help but make you the Queen of Want a full 7-rib roast? A club steak? A nice succulent rib
your table.That’s because Rib Roast is one of the finest, most steak? How about a Newport roast? With the top of the rib
flavorful cuts of beef you can treat the family’s tastebuds to. ground into some of the most fabulous hamburger you ever
It’s tender because it comes from one of the choicest parts of the tasted?
steer.The sixth through the twelfth rib. At Hills, you can have it. If you don’t see it in the case, just
stick your head behind the counter. Ask to speak to one of our
The rib eye, why look at that? butchers. He’ll be happy to cut a Rib Roast for you. Special. Any
If you want to spot a good rib, just look a rib eye in the eye. time and any way you want it. Exactly to your taste.
The rib eye, that’s the part in the center with all the meat.
So, what should you see when you look at the rib eye? Meat Government inspected?
that looks firm, fine-grained, and velvety-textured. A sure sign If you buy a whole rib at Hills you may see two
you’re getting quality Rib Roast our butchers say. With all the government stamps alongside the Hills stamp. (Sometimes
quality flavor and tenderness in every last rib. they’re lost in the trimming.) But we thought you might like to
At Hills, we never cover a rib eye with a label. On either know that our Rib Roasts are all inspected by the government.
side.That way, you can always get a good look at your Rib Roast. They’re all U.S. Government Graded. And they’re all inspected
From either side. for quality and wholesomeness by the U.S. Department of
Agriculture.
Fat and marbling, what about it?
Don’t be surprised if you see a lot of marbling running More information.
through the meat. A Rib Roast has even more marbling than Now you know what the best Rib Roast looks like. Now
roast beef. Which is what makes Rib Roast so super tender and you know you can come into Hills and buy the best.
juicy and flavorful and easy to carve. And when you come to Hills, we have an informative
The fat should look firm and white to creamy white. brochure on Rib Roast waiting for you. It’ll tell you the exact
time to cook a rare Rib Roast, a medium rare Rib Roast or a well
done Rib Roast (what a pity!). It’ll tell you how much you
should buy, how to store it, what goes with it. (Want some easy
carving instructions for your husband? M)u’ll find
them in our brochure.)
As for anything more you might
want to know about excellent Rib Roast,
ly ours and let your mouth tell
you the rest.

(jjjte)
We dare to make
you a smarter shopper.

An Institutional Supermarket Ad

One of a series designed to help the housewife become a

more knowledgeable shopper, to have more confidence in
the store, and to feel friendlier toward it.

623
 626 Reactions to this campaign from the consumers were glowing, and
Other the file of letters received is voluminous. Whenever we ran one of
Worlds of
Advertising
these ads we placed the item on sale at a reduced price. We found that
we were enjoying about a 10% increase in the sale of the item over
the normal sale in the past.
Although our campaign ended in 1971, our sales have continued at a
good rate, staying at an increased level of about 8% and 10% from
the time we started. Our objective was to create a new image and
confidence in Hills, and this was definitely achieved.
Management was extremely happy with the idea and the results.4

Specialty Shops

Many stores feature one class of merchandise—women’s apparel, household

appliances, TV and radio, hardware. Most of these are independently owned
and cater strictly to the local trade. Since their chief service to the community
is to have a wide range of needed goods, their advertising is usually confined
to holidays and an annual sales event, at which time they use newspapers,
circulars, radio. There are television production firms that prepare syndicated
TV commercial tapes, which stores can use on television for a series of short
flights during the year to sell the establishment to the viewers—as, for ex¬
ample, a series of films for jewelers, to advertise jewelry and gifts toward the
holiday and wedding seasons. Similarly, there are syndicated services available
for use in newspaper advertising. The whole ad, with art work, is prepared
in mat form, with room for the local merchant’s name. Often such stores will
use a local agency to prepare the advertising on a fee basis, or possibly a free¬
lance advertising man can be helpful.

Catalog Merchandise Stores

The history of retailing tells of a continual evolution in form. Innovative

merchants are always emerging, always testing new ways to please the con¬
sumer. The supermarkets of the forties, the branch stores and regional shop¬
ping centers of the fifties, the discount stores of the sixties, and the furniture
warehouse stores of the seventies, all attest to this continual evolution. The
decade of the seventies is bringing forth a new form, the catalog merchandise
showroom.
These stores are located near, but not in, shopping centers where the
rents are lower than in other shopping-center areas. About one fourth of the
space is devoted to displays of sample merchandise and to catalog order desks.
The remaining space is devoted to warehouse facilities, in which are stocked

4 Direct communication from Mr. Pittel.

large quantities of the items displayed in the front of the store, so that the 627
Einzelhandel
customer can take an item right home with him. The customer gets lower Advertising
prices because of the low real estate costs, lower display and selling costs, and
lower losses from shoplifting. At the store, the customer can buy from the
display room or order other merchandise from the catalog, which is the chief
form of advertising. In addition, the catalog is sent out to carefully selected
lists. The preparation of these catalogs, and the planning of their mailing,
promises to become an important adjunct to advertising. It may be expected
that, with competition, the stores will use mass media to let the consumer
know of their existence, operation, and advantages.

The Retail Media Mix

The problem of selecting local media is a "How best to . . . ?” problem:

How best to use the newspapers, radio, television, direct mail—the chief
media—alone or in combination with each other, to sell merchandise and to
attract store traffic.

Newspapers in Retailing

Newspapers have been around for a long time. They continue to be the
backbone of retail advertising; they are part of the way of life of a large part
of the population. Many a woman gets the paper, glances at the front page,
especially for local news, then turns to the department store ads to see what’s
new, what’s the latest style, even though she is not planning right now to buy
a new garment. And for grocery shopping, she turns to see the latest specials
the food stores are offering. Because the paper comes out daily, it permits the
retailer to tell about his latest offerings in each of his many departments, as his
schedule permits. Its Sunday edition, with its circulation going to the outlying
reaches, brings in many mail orders from the further distances, in addition
to store traffic the next day.
Newspaper supplements, which boomed into prominence late in the
1960’s, have eagerly been seized by department stores for getting quick re¬
sponse to their ads. These loose inserts—usually about tabloid size and from
eight pages up (but page size and number vary)—have also attracted direct-
response advertisers, with the result that the number of supplements carried
per issue threatens to become a clutter problem. Stores are watching their
continued effectiveness closely.
Newspapers are a special favorite of many department store buyers,
who like to see a proof of their ad before it runs, then see the ad when it
runs in the paper (so they can promptly call up the advertising department if
they are unhappy about it). The buyer can also post his ad in his department
so that the sales staff can be informed of it.
 628 Radio in Retailing
Other
Worlds of Two thirds of all money spent on radio is spent for local advertising.0
Advertising Prominent among the retailers who have long used it are the discount houses
and the chain stores; the traditional department stores joined in later, in terms
of volume.
Radio is a newsy medium with a short closing time. Through choice
of stations, programs, and type of music, a retailer can broadly reach different
audiences. One station will be programmed to appeal to young people 20-25;
another to the homemaker. A department store may use two or three stations
with a young audience, to promote a new young men’s department, and a
different combination of radio stations and times to advertise a ladies’ coat sale.
Radio is an effective medium for selling specific items or groups of
items. Radio can be used to promote a major sale of mattresses, with a sense
of urgency. "You had better take advantage of this event now, while the goods
last,’’ is the message.
Radio production costs are small; commercials can be produced quickly
and be on the air overnight. Radio has proved most effective for terse com¬
mercials of a specific merchandising offering.
Thirty-two department stores, members of the Frederick Atkins, Inc.,
buying group, responded to a questionnaire on radio use. Here is a cross-
section of replies:

Miller & Rhoads, Richmond: 49 spots a week, 52 weeks, on three

stations. Extra spots added for special promotions. . . . All time
segments covered, Sunday through Friday. . . . Plan to increase
radio use. Commercials are prepared by the agency. They promote
sales, items, store services, and image. Also tea room, buffets and
charge accounts.
The Killian Company, Cedar Rapids: 18 spots per week plus flights:
50-75 for a storewide sale; 70-80 for five days for "Teen Fashion
Bash’’ (high-school show, off premises); 10-15 for two days prior
to one-day warehouse, carpet, or mattress sales; 30—40 a week prior
to special events. Spots promote sales and service, events, items, image.

The Crescent, Spokane: We have found that radio is very productive

in reaching the teenager and young adult. We are using radio more
and more to reach the housewife during the day and the businessman
going to and from work.

The Halle Bros. Company, Cleveland: Most recent successes were:

Our warehouse sale. . . . On all previous sales, we used only news¬
paper, and traffic always dropped off at noon the day of the sale. For
this sale we used radio in addition to newspaper, and traffic was heavy
all day long. . . . Our store in Akron wanted to sell 150 pair of shoes
in a two-day period. We used radio and sold over 300 pairs.

5 See p. 121.
 Porteous Mitchell & Braun Co., Portland, Maine: Two-day mattress 629
Retail
sale advertised on radio only at a cost of $400 produced $5000 in Advertising
sales.6

Television in Retailing
Of all retailers, the two largest users of television spots are Sears and
J.C. Penney. Discount houses and supermarkets are likewise large users of
television. Traditional department stores as a whole were slow in getting into
television—largely, no doubt, because buyers liked the control over their ads
that newspapers provide, with their proofs and tear sheets. But the rise in the
use of television of these stores within five years has been spectacular, as re¬
vealed in the number of. commercials used in one week in October 1965 as
contrasted with that week in 1970, as follows:

1965 1970
Sanger Harris (Dallas) 18 63
Hudson’s (Detroit) 3 142
Joske’s (San Antonio) 22 257
Carson Pirie Scott (Champaign) 43 * 112
Rike’s (Dayton) 35 106

* Figure for 1968, when store TV began.

Source: Television Bureau of Advertising, Inc., 1972.

In connection with their TV advertising, Richard Slusher, vice-presi¬

dent for sales promotion of Rike’s (Dayton), had this to say:

Television on a local basis not only covers a metropolitan area, it

covers a multicounty area. Television covers that area where the rapid
expansion of newly developed communities requires a viable way of
communication. Statistics will show that our print friends have not
kept up with the moving masses. Circulation figures in most cases bear
out this fact.
Another advantage for television is the great ability to zero in on a
specific customer. With this selectivity, you can put your message
before whatever age you select: male, female, teenager, and so on.
Whether it is a promotion for a single item, advertised on television
only, or whether it is advertising to back up a general event in all
media, we know television works—it reaches people and the message
is registered!
What does it cost? Let’s look into some ideas related to production
numbers.
Television production does not have to be expensive. Excluding cities
such as New York City, Chicago, and Los Angeles, television produc¬
tion actually can be dirt cheap.

6 Radio Advertising Bureau, 1970.

 630 There are four practical avenues of TV production:
Other
Worlds of
First, there are the in-house production facilities, where you set up an
Advertising office that will consist of approximately 1 copywriter, 1 cinematogra¬
pher, and 1 coordinator. This is really the bare minimum to set up your
own television production staff, plus, of course, a manager or director.
With an in-house office, you can produce commercials economically
and, with practice, efficiently and professionally. Of course, to com¬
mit yourself to this personnel expenditure, you must have a pretty
large commitment of broadcast dollars.
The second avenue open to retailers is an independent film producer—
probably a one- or two-man production company. In this case, you
could write the copy with your existing print staff and have a creative
meeting with your outside producer and arrive at a suitable shooting
script. This is probably one of the more common ways of solving a
retailer’s production problem, since you are able to take advantage of
part of your existing staff.
The third avenue of production is a total surrender of production to
an agency or production house. In this case, you would give the raw
information with some direction to purpose and result to which the
proposed commercial is intended. The agency then produces the com¬
mercial from almost inception to the end product. This can be effective
if you are capable of little or no input based on your experience or size
of staff.
This leads to the fourth and final consideration of production facilities.
The television station:
Of all the people to be interested in your well-being, it is the tele¬
vision station. You will find that they will be more than willing to
explore production possibilities with you and to service you in any
way they can. This includes video taping as well as filming. Now, all
of the foregoing leads to down-to-earth costs and how to get them:
First, if you are serious about participating in electronic media, you
will realize that it takes a serious commitment of dollar expenditure
to be effective. If you can agree to an amount of expenditure for a
period of time (which is 1 year in most cases), you will certainly be
able to bargain with your local television stations.
The important fact at this point is that you are committed to a certain
dollar expenditure within a certain period of time. On this basis, you
can explore the best or most positive production possibilities in your
market. Your commitment is really your bargaining power. Of course,
it becomes your responsibility to determine which avenue of produc¬
tion is best suited for your company. Regardless of the amount of
dollars you have, whether it is $20,000 or $100,000, the station or
stations that you sign a contract with will give you a certain number
of spots for your money. In most cases you can work out a production
package as part of the deal. It is still possible that you could get your
 commercials produced cheaper from an outside source. So when it’s 631
Einzelhandel
contract time, contact all your television stations, agencies, and pro¬ Advertising
duction houses. The idea is to let each of these parties make a bid for
your business, and when they realize they are in competition with
someone else, you will be pleasantly surprised at how low you can get
production done.
Air time vs. production costs—how do you figure that?
I have developed a formula that is simple and seems to be reasonable
from the standpoint of costs vs. air time. Simply, it is a 4 or 5 to 1
ratio. That’s if your commercial production for 1 spot costs you $500,
you should spend about $2,000 to $2,500 minimum on air time. The
number of commercials become important to reach a certain number
of homes or a certain number of gross rating points. I really don’t
want to talk about money, because each market has different problems
and different costs. A better answer would be that for each commercial
you air you should have at least 20 spots. (There are exceptions, as
1-day sales, etc.)7

Direct mail advertising in retailing. "There’s gold in them thar

hills’’ might be said of every store with a mailing list of charge customers;
for many stores, these run up into many hundreds of thousands. For these
are the source of much business through direct mail.
Mass mailings of direct mail are costly. A store will venture its entire
list only once or twice a year—as for an annual sale, or for Christmas shopping.
It will then solicit mail orders, or more important, invite all who receive the
mailing to come in before the sale is announced in the newspapers the follow¬
ing Sunday. (This technique has resulted in some of the biggest sale days of
the year.)
But during the rest of the year, the list is not idle. It is computerized
with much information on it. Creative analysis of the list can yield fertile
subgroup listings. Mailings can be sent out to those who bought in one of
the departments only, instead of to the entire list, using a mailing that will
be of interest chiefly to them. Charge accounts with activity in the children s
department indicate young families, to whom a mailing could be sent for that
market. Or a list of customers who primarily buy home furnishings from a
full-line department store may provide the list for a research as to why these
customers shop elsewhere for apparel, so that appropriate steps might be
taken to bring such customers into the apparel department. Or a letter could
be written to charge customers who have not ordered in the past number of
months. Just being noticed like that is great therapy for the customer who
thought nobody was paying attention, and is a source of goodwill and con¬
tinued business for the store.
Sears, Roebuck sends computer-written letters to customers who pay

7 Television Bureau of Advertising, Inc., 1972.

 632 their bills early, encouraging these customers to shop often in the store, and
Worlds &of inf°rming them of the arrival of the new season’s lines, especially in the fields
Advertising of their purchases.

Career Opportunities in Retail Advertising

Of the many talents that lead to a career in retail advertising, writing ability
and art talent are preeminent. Does an applicant like to write? Does he write
well? Has he written for the school paper? Has he done any other kind of
writing for any club? These are the questions that will be asked of him. If he
shows that he does, and gets himself into an advertising department, he may
find himself working on some real ads soon, under guidance, and being quickly
launched into retail copywriting. From then on, depending entirely on his
talent, a career in retail advertising is ahead of him.
And if an applicant likes to draw, especially figures and style sub¬
jects, his sketchbook may be very interesting to an art director. Good adver¬
tising artists are hard to find, and if an applicant proves to be one, he has a
marketable talent.
Many advertising managers who came up through the creative end
are now officers of the stores for which they worked.
The above may not be surprising. What may be surprising, however,
is a report by Buxton. In speaking of five advertising agency men—correction,
four men and a woman—who changed the advertising world in the sixties,
he says: ". . . All had a solid retail experience, usually with department
stores.” 8

8 Edward Buxton, Promise Them Anything (New York: Stein & Day, 1972), p. 55.

Review Questions

1. What are the differences between 5. Discuss the major factors that af¬
retail and national advertising? fect department store advertising
budgets.
2. Generally speaking, how does the
retailer evaluate the effectiveness of 6. Explain the typical roles in depart¬
his advertising? ment store advertising of the divi¬
sional merchandise manager, the
3. In department store advertising, dis¬ department buyer, and the advertis¬
tinguish among promotional adver¬ ing manager.
tising, special events advertising,
and institutional advertising. 7. From the retailer’s viewpoint, what
are the advantages and disadvantages
4. Why do most retailers use their own of cooperative advertising?
advertising departments rather than
advertising agencies?
 8. Compare advertising planning in a priced specials and of institutional 633
Retail
major chain department store with advertising.
Advertising
that in a large traditional depart¬
10. Describe the major avenues of tele¬
ment store.
vision production available to the
9. In supermarket advertising, discuss local retailer who would like to
the relative roles of featured low- use TV.

Reading Suggestions

Duncan, Phillips, Hollander, Modern Simon, Julian L., "A Scientific Approach
Retailing Management, 8th edition. to Dividing the Advertising Budget,”
Homewood, Ill.: Richard D. Irwin, Journal of Retailing, Fall, 1969, pp.
Inc., 1972. 37-45ff.
Edwards, Charles M., Jr., and Russell Sorenson, Douglas, "Three Views of
A. Brown, Retail Advertising and Cooperative Advertising,” Journal of
Sales Promotion. 3rd ed. Englewood Advertising Research, December,
Cliffs, N.J.: Prentice-Hall, Inc., 1959. 1970, pp. 13-19.
Koehler, Alan, "Beware of Seven Whitney, John O., "Better Results from
Deadly C’s of Retail Newspaper Ads,” Retail Advertising,” Harvard Busi¬
Advertising Age, October 26, 1970, ness Review, May-June, 1970, pp.
pp. 56, 58. 111-120.
Rachman, David J., Retail Strategy and
Structure. Englewood Cliffs, N.J.:
Prentice-Hall, Inc., 1969, Chapter 14.
28
Direct-Response Advertising

Direct-response advertising is a field in which it is very easy to confuse

terms, because it represents a commingling of selling methods, media, and
trade practices. Hence we begin with some definitions.

Definitions

Direct marketing. This is the all-inclusive term that has come into
use comparatively recently to describe all forms of marketing in which the
seller sells directly to the end user, without recourse to a retailer or dealer. It
includes in-home selling, mail-order selling, catalog selling, and, when cable
television gets going with its two-way communication systems, cablecasting
selling.

Direct-response advertising. This describes any advertising that asks

the reader for a prompt response to the advertisement, with his name and
address. Typical uses of direct-response advertising are (1) selling merchan¬
dise or a service directly; (2) soliciting inquiries that will be followed up at
home or in the office by a salesman, or by mail; (3) soliciting requests for a
catalog (from which the recipient can subsequently order); and selling sub¬
scriptions or enrolling members in a club, for instance a book or record club.
Direct-response advertising uses a great variety of media—magazines,
newspapers, television, radio, matchbook covers, paperback books, and direct
mail.

Mail-order advertising. This is the form of direct-response adver¬

tising used in the marketing of goods directly from seller to buyer without
recourse to a retail establishment, dealer, or salesman. Many media are used
for mail-order advertising, as cited above. Mail-order advertising, which rep¬
resents a way of selling, should not be confused with direct-mail advertising,
representing the use of a medium.

634
 Direct-mail advertising. This branch of direct-response advertising 635
Direct-
is the designation of any advertising sent through the U. S. mail, or by "inde¬ Response
pendent postal services,’’ which are currently the object of experiments in Advertising

various cities. Direct mail is a medium in which the reader is usually asked
to return a card, order form, application blank, or even a roll of exposed
film—in other words, to take some action.
Direct mail is our third largest medium of dollar expenditure, rank¬
ing behind newspaper and television expenditures, and 50 percent above
magazine expenditures. Its usage has grown at a fast rate, expanding by 49-3
percent between I960 and 1970 as compared with the average growth of all
media of 64.3 percent.1 It is estimated that 75 percent of all direct mail is
used to produce direct responses.
Some large companies that operate many large book clubs and maga¬
zines spend up to $30 million per year to mail up to 30 or 40 million pieces
of direct mail.
Direct-mail advertising is used for purposes other than direct-response
advertising, too. It is used by retailers to announce forthcoming sales. It is
used by pharmaceutical houses to tell physicians about their new products. It
is used by businesses to keep in touch with customers. But the principal use
of direct mail is for direct-response advertising, and it is this use of direct mail
to which we address ourselves when we later discuss the medium.

Unique Features of Direct-response Advertising

In national advertising, the reader is encouraged to buy the advertised product

whenever the timing for making such purchase is right for him. Each adver¬
tisement is a cumulative reminder to do so.
In retail advertising, the reader is urged to come in early tomorrow
morning for the advertised product, at which time it is hoped he will buy
some other items also. But if he does not come in then, it is still hoped he will
think of this store first when he does go out shopping; the ad still has some
institutional value.
In direct-response advertising, the advertiser asks the reader to act
now, to send in the coupon or order card now, because if he does not do it
before he turns the page or throws the mailing away, the ad is considered a
loss. There is no credit for cumulative effect of such advertising, or institu¬
tional value, to offset the lack of immediate response. This realization that the
advertisement has only one chance and one way of being successful permeates
the entire direct-response effort.

1 See p. 121.
 FINAL COMBINATION OFFER-FOR SPRING PLANTING
EXPERTLY PLANNED WNDSCA« HYDRANGEA
GARDENING BARGAIN!
Without Extra Cost If
You Mail Order By

18
May 15th

SHRUBS
Blooming Bashes, Trees
8USH
HONEYSUCKLE PINK
SPiREA

Vines, RonDsn Plants

ALL FOR
,•***/*4:;«•# *w,

t jt' ** ONLY
WHITE SPIREA

YES! this is our biggest

Flower Bargain fn
America Today!
SELLS FOR $13.25 AT OUR
INDIVIDUAL PRICES
OUR PRICE IF
HERE’S WHAT YOU GET* ordered separately
1— TULIP TREE (Liriodendron). Tall shady. Blooms with tulip-like
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2— ROSE OF SHARON (Hibiscus Syriacus). Beautiful 5-15 ft. shrub.
Large single blooms. Beautiful color. 1.18
3-WAY GUARANTEE 1—SWEET MOCK ORANGE (Philadelphus Coronarius). Ht. to 10 feet,
1. If not satisfied on arrival return within 10 days for purchase clusters of flowers closely resemble creamy white orange blossoms
in color and fragrance.69
price refund.
1—RED OSIER DOGWOOD (Cornus Stolonifera) White spring flowers.
2. Any plant not developing replacement is free (5 yr. limit). Dark red spreading branches are a winter show.49
1—DEUTZIA (Deutzia Varieties). 5-8 ft. shrubs. Flowers are white or
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proof and we will refund difference in cash. 1—SWEET SHRUB (Calycanthus Floridus). Spicy fragrant reddish
grown 2" Spring flowers. Bright green leaves turn golden in the
fall. Up to 6 ft. ht.69
1—CORALBERRY (Symphoricarpos Orbiculatus). 5-7 ft. shrub. Very
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finest planting stock ... all for only $1.98 . . less than 11c each! white flower changes to yellow. Climbs trellises, posts, etc.80
1— PINK SPIREA (Pink Flowering Varieties). 4-6 ft. shrub used as a
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GIANT ASSORTMENT SELLS FOR $13.25 OUR INDIVIDUAL PRICES 2— F0RSYTHIA (Forsythia Varieties). Popular 9-12 foot shrub, with
A $13.25 value for $1.98? Unbelievable but true. We advertise and sell this same planting golden blooms early spring. 1.18
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every item is a good value at these prices. Yet you get this entire 19 piece assortment . . . ft. shrub. White to pink flowers in spring. .24
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seed or cuttings or nursery grown transplants . . . certified you in shrub torm for growing into a tree by following simple direc¬
healthy in state of origin . . . shipped vigorously alive, well-
rooted. 1 to 2 feet high, 1 or 2 years old, an ideal size for
LOMBARDY POPLARS tions. Giant white flower clusters turn lovely pink and purple.
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coupon. Do it now! Yours To Plant This All 19 Plants Yours for only $1.98
Spring For Only liEC | 4 Different Planting Layouts Included At No
(Minimum 5 for only $1.45) • Extra Cost Te Show Blooms To Best Advantage
Hardy, fast growing, the grucoful wo
shaped columnar Lombardy Poplar is
valuable both as ornamental and low
cost serviceable tree. Use for lining SEND NO MONEY Be sure to mail coupon now to get this final combi¬
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Thrives almost anywhere. Matures at spring planting time, roots carefully wrapped in moist material with easy cultural instructions.
heights to 70 ft. Planting stock is nurs¬ If C.0.D postage extra. Cash orders add 75c and we ship postage paid. Mail your order before
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ery grown from hardwood cuttings.
Never transplanted. Use order blank
to order our bargain offer. MAIL THIS
♦Varieties personally selected MICHIGAN BULB COMPANY, D*pt. SE-1440
by our experts as being suitable GrwnU Rwpids, Michigan 49902 COUPON TODAY
for most parts of the U.S. In
Send my order as checked. If not satisfied on arrival for Spring Planting
severely cold climates, check
I may return within 10 days for purchase price refund.

EVERGREENS* 34c
12 Piece Foundation
Planting ... All For
$398 100 FOOT PRIVET HEDGE for hardiness. Blooms illus¬
trated are reasonably accurate □ GIANT 18 PIECE ASSORTMENT plus HYDRANGEA and 4 planting guides. $1.38
as to shapeof varieties named □ Double order 36 plants PLUS 2 Hydrangeas and 4 planting guides 3.85
Combination offer of 6 popular varieties. 12 Evergreens, although they may vary be¬ □ 12 PIECE EVERGREEN FOUNDATION PLANTIN6.3.98
1 to 3 year old planting stock, nursery grown from seed or only $398 cause nature often turns out □ Double Order 7 65
cuttings. 3 to 12 inches tall which in desirable size for this tints and shapes found no¬ □ 100 FOOT PRIVET HEDGE (50 Plants).3.98
easy first transplanting. where else. While not antici¬
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YOU GET ALL 12 EVERGREENS -2 COLORADO pated, should we sell out one
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BLUE SPRUCE (Picea Pungens), 2 NORWAY or more nursery grown varie¬
ties, we may include instead □ 10 POPLARS $2.75 □ 25 POPLARS $5.95
SPRUCE (Picea Abies). 2 PFITZER JUNIPERS Imagine! a 100 foot Privet Hedge that dresses up your
any equally suitable planting □ Remittance enclosed. Add 75c and we ship postage paid.
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BORVITAE (Thuja Occidental i«>, 2 DWARF MUGHO hedge! Or, for faster effect and more dense growth, order
PINES (Pinus Mugho Mughus), 2 AUSTRIAN PINES 100 plants for only $7.65 and plant every 12 inches. Free collected and of equal or
greater besuty. EVER¬ NAME___
(Pinus Nigra). cultural instructions help develop in shortest time possible.
Save Money on your evergreen foundation planting. We ship the Ligustrum Species planting stock we think GREENS—in extremely hot
Check coupon and get these 12 evergreens for spring best suits vour climate, and of same size stock and fine Southern Climates check for
planting only $3.98 . . . less than 34 < each! quality as feature offer above. growth ability. OUR 3 Way
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CITY_ -ZIP ,
MICHIGAN BULB COMPANY Dept, se 1460 grand rapids, mich. 49502

A Mail-Order Advertisement

Observe how specific is the offer, how it is presented in words and pictures, and
again, how it is all spelled out in panel on right. The copy is detailed (though
hard to read in this size). Accompanied by 3-way guarantee. Presenting also a
variety of other offerings. At top—urge to action, with free offer. Reiterated on
coupon copy below. All designed to get that signed coupon back.
Types of Direct-response Advertising 637
Direct-
Response
Said Frank Vos, an authority on direct-response advertising, "The art of Advertising

direct-response advertising is taking an order." The crux of taking an order

is in planning the offer that the reader is asked to make. A substantial propor¬
tion of such advertisements offer an outright sale of a specific product.
The simplest examples of this kind of advertising are the small ads
one sees in the shopping columns in the back of some magazines, or in the
shopping section of Sunday newspaper supplements. It is expensive, per unit,
to get an order this way; hence either the order item must be high-priced in
relation to cost, to show a profit, or else the offer is a way of building a list

A Direct-Response Advertisement

Designed to get expres¬

sion of interest, which
may serve as a lead for
a salesman.

m t KS
feet?

Why does World Dook outsell all other encyclopedias? Its easy to understand.
Their school day doesn’t end with the ringing of the bell. It research. Its Research Guide/Index...Volume 22...not only
continues at home . . . with every research paper they write, gives them 150,000 index listings, but a 30-page section on
project they prepare, and exam they study for. How to Do Research. And 200 Reading and Study Guides that
It can be a difficult time for children. World Book can make lead them to many important sources beyond the set.
the going easier. Because World Book is designed for stu¬ So, is it really any wonder why . . . World Book is the ency¬
dents. It’s geared to their school curriculum. Especially suited clopedia that outsells all the others?
to their study and reference needs. It’s comprehensively
written. And written to be understood.
World Book offers them a current and accurate FREE: Reprint of World Book’s new 12-page “Environmental Pollution” article.
reference source of information. Puts facts and r
figures at their fingertips. And stimulates their TO: Charles Stewart. Sta. 20, Field Enterprises Educational Corp.,
Merchandise Mart Plaza, Chicago, Illinois 60654.
imaginations with meaningful articles,
IP’SHMutm. Please have a representative contact me regarding World Book. No obliga-
with maps and illustrations. tion, of course.
In addition, World Book encourages □ I would like a free reprint of the World Book article entitled
deeper investigation and independent "Environmental Pollution’’.
□ I now own a 19_World Book, and would like Information
on trading in my old set for the 22-volume World Book.

Name.

World Dook
The one encyclopedia that outsells all the others.
-Zip-

Phone Number.
The 22-volume World Book Encyclopedia in the luxurious Renais¬
Field Enterprises Educational Corporation. A Subsidiary
sance binding is just $264 plus tax, delivered (slightly higher in
of Field Enterprises, Inc. Affiliated with Field
Educational Publications, Inc., and A. J. Nystrom Co.
Canada) Other bindings at lower prices. Monthly terms available.
041-72-11-WB
_)
World Book-Chlldcraft of Canada, Ltd.
 638 of people to whom the advertiser can later sell kindred items by mail. Whoever
Other
responds to a mail-order offer will probably receive a package containing
Worlds of
Advertising many "bounce-back” circulars offering other merchandise of related interest.
"Bounce-back” circulars included in mail-order shipments will often produce
as much as 20 to 40 percent additional immediate sales from customers. The
advertiser takes this extra business into consideration when he calculates how
much response he needs to made his ad pay.
Another type of direct-response advertisement is a two-step sales
method. The advertisement is designed to get an expression of interest in the
form of an inquiry that will be followed up as a "lead” by a salesman. This
technique is frequently employed by firms selling costly products such as home
study courses and multivolume encyclopedias. These may entail the need to
discuss the whole matter with a personal salesman, to answer the questions
a prospective buyer may have.
Another type of direct-response advertising in two steps is that in
which the advertisement seeks to get inquiries for a catalog from which the
recipient can then order at will.
Book-club and record-club ads utilize still another form of proposi¬
tion. They offer a book buyer a great bargain now, in exchange for his promise
to buy a certain number of books later. In offers of this type, the advertiser
does not expect to break even on the original offer. He makes his profit on
the books (or records) subsequently purchased and paid for by the new mem¬
ber.

Direct-response Copy

Of all forms of advertising, direct-response advertising adheres most closely

to a recognizable pattern. It uses strong specific promises or selective head¬
lines, as in these instances:

15 ways to bigger pay

How to get $20

in buying power—for every
ten bucks you spend

Most women can’t answer

these 22 questions about clothes.
Can you?
 in buying power—for every
ten bucks you spend!
Do you have to “know somebody”-to buy turer’s suggested list price or the fair
at factory prices? Yes, you do. Us. Unity
How much did you overpay today? comparison price.
If you just bought this fa¬ • FACTORY PRICE BOOK, where you’ll
Buying Service.
mous-name blender for find the Dealer Cost of every item, and,
Join us . .. and you’ll never pay regular $36.00, you overpaid by lowest of all, the Factory Price you pay
store prices again. $17.10!
plus 6% service charge.
To be specific, you’ll get about $2 worth If you just bought this na¬
of merchandise for every dollar you spend. tionally advertised cookware Then start comparison shopping. Check
How is this possible? Simple. You'll have set for $34.55, you overpaid the prices in our Factory Price Book
an “in.” You’ll be part of a special group by $19.56! against any store or discount house in your
of people who never have to pay store area. We know they can’t beat us.
prices ... a privileged “inner circle” of With few exceptions like bulky furni¬
You can depend on
consumers who can save up to 50% or ture, all items are stocked in our modern
UNITY BUYING SERVICE -
more on every purchase they make. warehouse where all orders are filled and Unity has been in business over 10 years.
Our organization can be described in shipped promptly. Remember we are not We're pledged to prompt, efficient, de¬
one simple sentence: We enable you to brokers or agents - we stock our merchan¬ pendable service- Maybe that’s why we've
become America's Number One factory
buy nationally advertised, brand-name dise. buying service.
merchandise at DIRECT FACTORY Everything comes with the manufac¬ We do an annual business that runs into
PRICES plus a 6% service charge. turer’s full guarantee. And with our own millions of dollars. In the last five years
That’s all there is to it. There are no guarantee on top of that: if you are ever alone, we’ve sold more than $100,000,000
worth of merchandise.
“gimmicks.” No strings attached. dissatisfied, for any reason, with anything
Orders are processed within 48-72 hours,
If you want to get more for your money you buy from us, let us know within 10 and shipped direct by U.S. Mail, United
- actually DOUBLE your purchasing days ... we will either exchange it or give Parcel Service, Railway Express or in¬
power — join Unity now! you a refund. sured trucking firms.
As a member you can buy the things Unity Buying Service, Inc.
you want at never-heard-of prices like Prove it to yourself! Mt. Vernon. New York 10551
these . .. In a “nutshell” we are promising you up to
two dollars’ worth of buying power for No minimum purchase!
• $18.85 for a nationally advertised watch You can buy one item — 10 items — 100
every dollar you spend now. This may
listed at $41.95 seem to be too good to be true . . . and items — or nothing at all. There is no
• $21.95 for IVi" saw listed at $49.95 limit, and no minimum purchase. The
these days, we can understand that!
• $35.00 for a portable sewing machine
So what other proof can we offer you choice is yours.
selling for $99.95
that Unity Buying Service is for real? Just Act now!
• Yes, that’s all you pay plus 6% service We print a limited number of catalogs
this: test the Service at no risk. Here’s
charge and shipping. how: Send us the membership application each year. Once our supply is exhausted, we
And I’m talking about savings on famous- with your $6 annual membership fee. In will not be able to accept new members
brand merchandise. Names like Kodak, return, we will rush you .. . until a new catalog is printed next year.
Gruen, Polaroid, Schick, Royal, Reming¬ • Our 436-page current catalog, picturing All memberships are accepted on a first-
ton, Webcor, West Bend, Oster, Regina, come, first-served basis. Membership ap¬
in full color most of the 10,000 items
MacGregor, Oneida - and more than 200 you can buy at huge discounts. This plications received too late will be re¬
other nationally known manufacturers. catalog will show you the manufac¬ turned. Mail your application right now!
Unity gives you the power of numbers... ..MAIL COUPON TO:
How can Unity offer merchandise at such 5 Unity Buying Service, Inc.
exclusively low prices? I Dept. 434, Mt. Vernon, New York 10551
Well, suppose you could buy direct from Yes, I’m tired of paying today’s high prices. Enroll me as a mem-
the factory. Your cash savings would be I ber of Unity Buying Service and rush my giant colorful 436-page
I current catalog and confidential Factory Price Book. I understand
enormous. 5 there is no obligation to purchase anything. However, any mer-
But you’re only one person. Chances [ chandise I do decide to buy will always be shipped direct to me
are that no manufacturer will sell directly I at low factory prices plus 6% service charge and shipping If not
to you. But we represent 400,000 members ! satisfied with any shipment, I may return the item for exchange
— and that’s a lot of buying muscle! So • or refund.
we’re able to buy direct at factory prices.
And we sell to our members at . . . the □
I CHECK ONE:
“ I am enclosing $6 to cover one full year’s membership. In¬
clude the Better Business Bureau’s Consumer Buying Guide
factory price, plus 6%., plus shipping EXTRA Free — mine to keep in any case!
charges. Period. BONUS
That 6% is to help us cover our ad¬ □ am enclosing $2 to cover a three-month trial membership.
ministrative costs and make a profit. No with one-year
membership Print
store, no matter how large, can make that
only. We will
statement. include Better
Apt. #
Everything you buy is brand new, Business
first quality, and fully guaranteed. Bureau’s CONSUMER City State Zip
BUYING GUIDE Free. NO-RISK GUARANTEE: If not delighted I can cancel membership
No “seconds” or “discontinued models.” Keep this valuable book and return all membership material within 30 days for prompt
Every item is brand new, first quality, and even if you cancel refund of my membership fee.

in the original factory carton. membership.

A Direct-Response Advertisement

Designed to get payment for membership in a catalog buying service.

 640 Such headlines will be followed by an abundance of copy that is specific, fac¬
Other tual, detailed—completely describing the proposition. It seeks to anticipate all
Worlds of
Advertising the questions that the buyer might ask. The advertiser must convince the reader
totally—even at the risk of losing the attention of many people who don’t
like to read long ads. This is probably why successful direct-response copy is
usually wordier than other forms of advertising. The direct-response adver¬
tiser must convince the very tiny percentage of readers who are ready to order
now.
Direct-response advertising abounds in devices designed to stimulate
the reader to action. Free trial offers, special tokens to be inserted in order
cards, bargain trial subscriptions to magazines, reduced-price prepublication
book offers, extra gifts or merchandise for immediate orders; these are some
of the tools of getting coupons back in direct-response advertisements.

The coupon. The coupon, or order card, must restate the entire
details and terms of the proposition, for, when signed, it becomes a contract.
Each will carry a small code (key number) to enable the advertiser to trace
the medium from which the coupon came, and the advertisement. The order
card itself may be IBM-punched in advance to indicate the source. The direct-
response advertiser can tell instantly whether his order came from Better
Homes and Gardens or from Good Housekeeping, and from which issue.

Direct-response Media

In national advertising, the advertiser determines who and where the people
who represent his market are, and then seeks to select media to reach them.
The product itself will be bought in many stores by people who never saw
the advertising. To the direct-response advertiser, however, the media are his
only market; he has no other means of reaching people who may be interested
in his product. Or conversely, unless he has a medium for reaching people
who may be interested in his product, he has no market; he has no business.
Direct-response advertisers use most of the media employed by na¬
tional advertisers, but the way they use them may be different in some respects:

1. The position in which an ad runs in a magazine is very important

to the direct-response advertiser. His results are usually greater if
his ad appears in "the front of the book.’’ Right-hand front pages
are preferred. Back covers of a magazine are also very productive
per dollar. Another good position is the page facing the third
cover of a magazine.
2. All advertisements contain a coupon or order card. In magazines,
the direct-response advertiser heavily uses card and order-form in¬
serts, along with his full-page advertisements.
 3. In newspapers, the direct-response advertiser goes in heavily for 641
Direct-
color pages in the Sunday magazine sections and for loose inserts.
Response
He also uses the special sections devoted to his type of product, such Advertising
as gardening or travel sections. Some Sunday papers also have
special mail-order pages.
4. Advertising in certain months seems to pull better for some (but
not all) direct-response advertising than that in other months. The
better months are July, August, September, January, and February.
5. In television, time scheduling is quite different for the direct-
response advertiser than for the national advertiser, as we will
discuss later.

Direct Mail

Direct mail is the only medium for whose production and issuance the adver¬
tiser is wholly responsible. His audience is the list of people selected to receive
the mailing. The first step in the direct-mail operation is gathering the audi¬
ence, represented by lists of people.

The List

There are various ways of looking at lists. First we consider them as

being either house lists or outside lists.

House lists. One’s own lists are usually referred to as house lists. These
lists may consist of the name and address of the firm’s customers, or a list of
prospects, or any other mailing list that the advertiser keeps and maintains.
Depending on the size of the advertiser and the size of the list, the method
for maintaining the list might range from a simple file of address stencils to
a computer tape on which the names and addresses are recorded magnetically.
Today, virtually all lists of any size are kept on magnetic tape.
House lists have to be kept up to date. Changes of address must be
posted promptly and regularly. New names have to be added to the list (suit¬
ably keyed to show how they entered the list—customer, inquirer, etc.). From
time to time an advertiser will send out to the list a mailing piece bearing a
legend on the envelope that requests the Postmaster to return those envelopes
that cannot be delivered; such names are then removed from the list.
House lists can be classified in many ways to enable selective mailings
to be made to customers or prospects. The Postal Service requires that mailing
lists be broken down by states and in conformance with zip code centers in
order to facilitate postal handling.
The care and feeding of house lists is a big responsibility—and ex¬
pense.
 642 Outside lists. In addition to his own lists, an advertiser can use
Other outside lists gathered from two original sources: compiled lists and response-
Worlds of
Advertising derived lists. A compiled list is one that has been put together from other
printed sources, such as the telephone book, trade directories, association
members, club members, and other published records too numerous to men¬
tion. This compilation is usually done by list companies, who issue catalogs
describing their list offerings—Beverly Hills homeowners, New York State
plumbers, new Cadillac owners, high-prescription-writing physicians, and
other closely identifiable groups. The larger lists can be rented for a one-time
use; the smaller ones are usually purchased outright.
Large compiled lists are widely used for mass magazine-subscription
mailings, "cents-off” coupon mailings, and for other broad marketing pur¬
poses. They are also extensively used for industrial direct-mail purposes.

300,000 Mai! Order Catalog Buyers 27.50/M including hundreds of thousands of

MAIL ORDER BUYERS MAJESTIC DISTRIBUTORS M.O, Buyers
Here is an unusual group oi Mail Onto Buyers, and Charge and Buyers of Appliances, Lawn Furniture, A, Bv Mail Order
Credit Card lists arranged for your convenience by classification: Camping Equipment, General Catalog 100,000 Mai! Order Color Pads Buyers 25/M
Merchandise, $40 Average Order (850 to $100)
Sift Buyers
50,000 Polaroid Copy Service Buyers 25/M
Credit Card & Charge Account Customer Files Black is Beautiful (multiple copy print buyers
Erudite Book & Magazine Buyers Black Women M.O. Buyers of Wigs, by mail)
Religious & Educational Material Buyers Fashions, Cosmetics 15,000 M.O. Christmas Caid Buyers ffi/M
Hobby & HiFi Consumer Buyers 356,000 "HOWARD TRESSES" 30/M
B. Warranty Card Rewstrants bv Mail
Sporting Goads Buyers List owner must do mailing. 1,500,000 Buyers of Cnlor Pack Cameras 20/M
Miscellaneous Consumer Buyers Not returnable. (850 to SI60) (can select
Business Mai! Order 8uyefs
14,000 "EWING GIFT SALES" 25/M by age or owner, and value of camera)
Farmer Mai! Order Respondents
A smaii determined mail order
Included here are the following: house in the southwest, just beginning select by Age and Sex - 2/3 under age
f. What we are certain will be the top gift list of the ,,70's"~ to catch on, $5 to S10 gift items. 30, 48% under 20)
J, Carton's Inc. 100% Direct Mail, Doubling armuaiiy. 50,000 Canadian Polaroid Buyers (can select 26/M
2. A dozen lists of true affluents - who buy by mail, Color Pack or Swmger Model Buyers)
3. One of the key business mail order fists HIGH LEVEL CREDIT CARD HOLDERS
<5. The major farmer mail minded list EROIOTE MAGAZINE AND BOOK BOYERS
AND CHARGE ACCOUNT CUSTOMERS 25/M
5. One of the best entries to upper income black Americans 30,000 Patrons, Donors C<wuibutu<s to
6. Bond Store mail order & charge account customers Luxury Leather Goods AMERICAN CONSERVATORY THEATRE
Charge Account Customers San Francisco's nationally famous ACT -
The data here covers name, a brief description and price per M. For 30/M
200,000 MARK CROSS BUYERS virtually every eulturaify minded
detailed desorptions and the fists which seem to fit your market please
Families of means who buy expensive civic leader in Bay Area. Mail order oriented.
luggage and gifts at one of She most Collectors Editions of Books, by Matt
exclusive gift stores in Amet tea,' "HERITAGE CLUB M.0. BUYERS"
High Fashion Charge Account Customers 48,000 Club Buyers 25/M
?*;/M 17,000 Expires 20/M
THE PECK AN0 PECK WOMAN
Average purchase oi elegantly bound
380,000 New Charge Accounts
nooks - $58, People of expensive taste,
Travel mmded, upper income
wilt) means to match, willing to buy by mail
1818,000 Med. income! college educated
families who buy debonair fashions in one Interior Decor Magazine Buyers
of America's great chains of specialty "ARCHITECTURAL DIGEST''
aeparei stores. 55,000 Subscribers 25/M
720,800 Credit Cleared Charge Customers
mm Recent Expires 20/M
Average annual Income - §30,000
Gift Merchandise For Executives BOND STORES CHARGE LIST
interested in exceptional homes, and home
158,000 "j. Carlton’s inc, M.O. Buyers" 30/M Includes over 200,000 large ticket credit
decor, prints, painting, sculpture
15,000 New Orders Each Month mm mail order buyers. Ail active accounts
Chess Devotees
Catalogue & item M.Q, Buyers within current two year span. Cleaned monthly.
For M.0, setetittn, please mcpsifS. 23,000 M.O, Chess Magazine Subscribers 25/M
With Average Sale of S2f
56,000 Prospects S Expires, Inquirers 15/M
Can select Buyers by sue of
324,000 Big and/or Tall Mail Order Customers fBATMO) 25/M & Contestants
purchase, muitipie buyers,
Can Select 21,000 Current Mail Order Buyers 30/M U.S. Chess Federation ("CHESS LIFE & REVIEW"
buyers this month, Catalogue
Can Select 510,000 Mail Order Catalog Requesters list of chess devotees. Only publication
Buyers, Credit Card
Odd and Oversite Men - Who Regularly Buy by Mail serving chess players.
Boyers, Direct Mail
Advertising Buyers, LIBERAL COMMITTED THINKERS
50,000 "RESTAURANT ASSOCIATES" 28/M
"Mail Order Watch Buyers" "CENTER MAGAZINE"
High income credit checked executives
30,000 Subscribers 35/M
46,000 HILTON & SILVER WATCHES WM who dine at "Four Seasons" and other
40,000 Expires 25/M
Mail order buyers of watches expense account restaurants. 25/M
10,000 Trials
- average value, over $25, Males
25,000 Well Heeled Gardners 25/M Subscribers & Former Subset ibers to one ef
and females. 108% by mail
M:aS Order Buyers & Inquirers for the leading magazines of dialogue and
M.O. Gift Merchandise Buyers Greenhouses SHE Average Order - $98 eontroversy.
mm brooks, ltd Minimum
A division of Missouri Petroieom Concerned Liberal Americans
Available far the first time, customers
74,000 Recent Boyers 25/M 40,000 ''INDIVIDUALS AGAINST THE CRIME OF 30/M
of "PETER REIMULLER - GREENHOUSEMAN"
59,000 Former Buyers M Adding 10,000 per year SILENCE"
This list, placed on computer by People committed to immediate ending of
260,000 M.O. Land Inquirers & Buyers 2S/M Vietnamese conflict... contributors who
J. Carlton's lne„ is one of the
LEHIGH ACRES DEVELOPMENT. INC. permitted use of their names,
best known merchandisers of gif ts by mad.
.., plus 38,000 new names monthly
Average sale - over 550. 10®% M.O. Psyr.holociai & Sociological
inquirers and installment buyers af
Merida Citrus M.0. Buyers Mage; mu Buyers
Florida land. Average sale 82,506.
68,000 "MAIL-A-MATIC" 25/M 8,000 "INSIGHT SUBSCRIBERS" 35/M
7594 Male. Updated Regularly.
Buyers of oranges and other food A think magazine published by Interdisciplinary
products by mail. Primarily confirmed POLAROID CAMERA BUYERS Studios of Men concerning insight into the mind
muitipie repeat buyers. Two Million M.O. Respondents... of nan. Mainly M.O. buyers.

Courtesy: Ed Burnett Page from Mailing List Catalog

Note the variety of different lists which can be bought.

 Response-derived lists. Somebody else’s customer list or prospect 643
Direct-
list, which is offered for rent, is referred to as a response-derived list. The
Response
addressee had to "send away’’ for something to enter the list—usually in re¬ Advertising

sponse to a mail-order ad or a piece of direct mail. For this reason, people on

response-derived lists tend to be more prone to ordering by mail, and there¬
fore these lists are more productive than compiled lists.
Usually these rented lists do not actually come into the advertiser’s
possession. A third party, such as a lettershop, which we discuss later, under¬
takes to address Company A’s mailing pieces with the names on Company B’s
list. Company A therefore never actually sees the mailing list it uses. Only
those names that respond ever become known to the mailer.

The List Broker

An advertiser may also be able to rent the use of lists through a list
broker, who acts as a clearinghouse and consultant. One leading list broker,
the Lewis Kleid Company, describes its work this way:

Our office registers some 9,000 different lists. We merely act as agents
and negotiate the rental or exchange of names. These lists run from
approximately $23 per M up to $35 per M. At the lower end of the
scale we have inquiry names, contest names, premium names, and
at the other end there are subscriber lists, members of record clubs,
buyers of financial services, etc.
Our commission (20%) is paid by the owner of the list, so that the
user gains our knowledge, experience, and advice without a sur¬
charge.
It would be hard to define all the possible types of lists used for
any specific mailing, since it is a matter of constant testing. For exam¬
ple, a magazine like Saturday Review would test lists of people who
have bought records by mail, books by mail, people who have at¬
tended concerts, people who have been abroad, and almost any other
list which has a cultural mail order qualification.
With the advent of computers, almost 95% of the available lists are
now being reproduced on labels and magnetic tape. The magnetic
tape is used for computer letter writing and for eliminating duplica¬
tion among the lists being mailed.
When you rent names, it is understood that the names will be used
one time. The list owner must approve the mailing piece and the mail
date.

Billions of mailing-list names are rented and exchanged each year,

for one-time or multiple use. Before renting the entire mailing list, direct-
response advertisers will test a sample portion of a list in order to ascertain
the cost per response, before proceeding with a larger use of the list.
 644 The computer and magnetic tape make possible many refinements in
t_, ?!he\ mailing list selection.
Worlds of 6
Werbung

Matching Lists

One of the big problems that have plagued direct-mail advertisers—

and the public—is the fact that one person can be on many different com¬
puterized lists that an advertiser may use. As a result, that person will receive
two or three copies of the same mailing (from different lists), which in itself
is a big waste, but more important, annoys him greatly and reduces a chance
of getting an order. Since most lists are on tape, especially the large ones, it
is now possible to have the various tapes matched, casting out all duplicates
and leaving one master tape. These duplicates are valuable; they represent
people who were on two or more lists because of their purchases; they may be
prime prospects for other offerings. Large mail-order houses keep a list of
bad credit risks, which likewise can be checked, along with other lists, in
developing the master list; they also list zip code areas that are known to be
unsalable for the advertised product under consideration, and names in these
areas can be removed from such a master list.

What Makes a Good Name?

There are certain people who will be more responsive to a mailing

than others. Among these will be (1) customers who have recently ordered;
(2) customers who order frequently; (3) customers of similar products; (4)
volume buyers, (5) people who have shown interest in a related product—
i.e., book-club buyers, record and tape buyers; and (6) people who have a
demographic interest in a product—i.e., parents, encyclopedias; young mar-
rieds, insurance. Direct-response advertisers get a higher response from those
who are known to reply to direct mail than from those who are not so known.

Planning the Direct-mail Material

The creation and production problems of direct mail are interesting

and varied. The direct-mail writer, art director, or production man is not
bound by a set of publisher’s rules, as in the case of magazine or newspaper
advertising. Instead, he uses whatever size format he wants and whatever
paper and printing processes he wishes.

Formats. A piece of direct mail may vary from a single folder, bear¬
ing the address on the outside, to elaborate color folders and booklets sent
with other enclosures in a special envelope (referred to as the direct-mail
package). There has been a steady rise in production costs, as list rentals,
addressing, printing, and, above all, postage—have all been growing costlier. 645
Direct-
Postage is scheduled to go still higher. Ironically enough, the postage increase Response
has been a strong influence to come out with more elaborate packages, de¬ Advertising

signed to pull more orders per thousand, as a way of overcoming the rising
costs. Therefore the trend has been toward more creative mailing pieces, often
involving computerized personalization of letters, and other devices designed
to encourage the reader to reply.
Experience has shown that any mailing that seeks an order should
include a separate order form. If money is sought, a business reply envelope
should also be included.
A letter is always advisable when an order is desired. It may be ac¬
companied by a circular that expands upon the uses, applications, virtues, and
details of a product, but a circular alone rarely does a good job of getting
orders.
Airmail envelopes and postcards have often been effective in convey¬
ing a sense of importance and urgency for the message.
The direct-mail production manager has special scheduling problems
to solve in preparing direct-mail advertising. First of all, he has a mailing-
date deadline to meet. This date will be determined by the availability of list
rentals at a particular time, the seasonality of the offer, and the wishes of the
advertiser. Certain parts of the mailing piece are going to take much longer
to produce than others. Special-size envelopes usually require the greatest
amount of time; mechanical artwork for them must be released first.
Mechanical artwork for the circular is usually next to be released.
The order card and the letter are usually simpler, and thus they require less
time between the release of the mechanical and the delivery of the finished
work by the printer.
The mailing pieces sent to names on each list will have to be keyed
separately, so that the advertiser can tell exactly how many orders are pro¬
duced by each list. The production man must determine the exact quantities
of each key, and issue precise instructions to the printer and to the lettershop.
This requires careful attention on the part of the production and traffic per¬
sonnel.
The lettershop is a specialized business that has developed to serve
the direct-mail advertiser. This type of company takes care of the physical
handling of mailing pieces, often addressing (nowadays labels are mostly
used, addressed by computerized methods), inserting, sorting, and mailing
them.
Good lettershops can be found in all large and medium-size cities
and in many smaller ones. They perform a wide range of services for the
direct mailer, and they can save both the neophyte and the experienced ad¬
vertising man much grief.
For those who are interested—one’s own mailbox is a living source
of direct-mail examples.
 646 Direct-response Arithmetic
Other
Worlds of
Advertising
Most advertising men are fascinated by direct-response advertising, because
it is the only form of promotion that enables an advertiser to know exactly
"where he is at,” to know exactly how well (or how badly) the advertisement

WORKSHEET FOR PLANNING PROFITABLE MAILINGS

Date:

pr key

A Mail-Order
Cost Worksheet

- iB» Showing how

■ 7-r w quotas for mailings
. 6? o
—
wSSSm are established.
'3o mm,,
■ 7’C~
7'Ho
3 - Administrative Oyerhead
a) Rent, Light, Heat, Maintenance, Credit Checking,
OOilcCLlOnS, Clh# ^ ^ /0 ui FI x J —— — —~' —
ol' dTc?

IO°/o MKtM
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■Hfli
— 1 Otal V
*7 L/Uhls y7T C- piUo if J, # O, dilCI jf O f --______
mission from the
/ S* V / Aug. 17, 1970 issue
of Advertising Age.
/M7 Copyright 1970 by
Crain Communica¬
tions Inc.
m to. (,7
<tb.03 ■Hi
?«0
for additional copies of this form, contact Marketing Services Manager,
BOISE CASCADE ENVELOPES. 313 Rohlwing Road, Addison, Illinois 60101 Tel. 3 12. 629-5000
Form No. B-9
is working. Direct-response advertisers always know what their costs are and 647
Direct-
exactly how much business was produced from any given expenditure. They Response
have their own special kind of arithmetic. They divide the total cost of an Advertising

advertisement by the number of keyed responses received from the ad. The
quotient is the advertising cost per coupon, sometimes called the cost per
order (CPO). Experience eventually tells an advertiser how much he can
afford to spend for a coupon in each of the various media or lists he uses,
and still make a satisfactory profit.

Direct-response Testing

Another great advantage enjoyed by direct-response advertisers is that they

can readily test any particular ad or mailing piece before spending large sums
on it. They test offers and prices, headlines and copy approaches, mailing
format. They use keyed coupons and mailing cards to test the pull of various
magazines and newspapers. And they test small segments of larger mailing
lists to decide which to rent.

Split-run tests. The most frequent and precise way of testing two
or more publication advertisements is through the split-run facilities offered
by many large-circulation magazines, and by some newspapers, especially in
their Sunday magazine supplements. By this method, each advertisement is
printed on the same press but from two different rollers. The copies are
printed simultaneously, so that two identical copies come off the press and
through the bindery simultaneously. Ad A is run in one copy and ad B is
printed in the other. These copies are automatically intermixed as they come
off the press, so that an equal number are sent to each newsstand. The same
thing is done with respect to subscription circulation. Each contains a keyed
coupon, and a careful count is kept of the replies from each. Split runs pro¬
vide a foolproof copy-testing capability; the exposure of both ads is equal
and identical, and therefore the ad that pulls the most coupons must be the
better of the two, and is used further, provided it meets the cost-per-order
target.
However, there are a few cautions to be observed in interpreting
split-run results. First of all, the kind of people who read the magazine you
use to test should be more or less similar to the circulation in which you will
subsequently run the winning ad. (You would certainly not want to schedule
a split-run test in Family Circle to determine which piece of copy to run in
the entire circulation of Playboy/) Also, there must be a statistically signifi¬
cant. difference between results in order for conclusions to be drawn. Small
differences between the pull of ad A and ad B can usually be attributed to
random factors, and must be ignored in making business decisions.
 No woman ever knows too much
about love, marriage, money,
clothes, entertaining!

KA;\-

iSffln
8

Choose any guide above for only

as your introduction to the Amy Vanderbilt Success Program for Women
In this competitive world, no woman can dramatic . . . serene . . . formal or informal
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learn the success “secrets” of world-famous how to avoid them. Color Scheme Chart shows 505. How to Be a Well-Dressed Woman
women . . . share models’ secrets of fashion, you how to combine basic colors with accents. What is your figure problem? Large hips? Too
glamor, hair styling, wardrobe planning and 303. How to Give Successful Dinner Parties tall? Heavy arms or legs? Spreading tummy?
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plan successful parties and make new friends. your success-without extravagant spending? This new fashion guide will show you how to
In short, how to succeed at almost everything. Hundreds of “tips” from famous hostesses, look more attractive, gain new confidence
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101. Happy Marriage type is described on pages 14-16—along with
What are the 10 “danger signs” in a so-called Wines. Table Settings. What to wear. How to
keep a bore from monopolizing the conversa¬ the secrets of how to choose the styles that
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answer when a problem-drinker requests “an¬
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you know it? What is the mistake many wo¬ other”? Everything you need know to be the
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don’t realize there is only one truly successful
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understand yourself and your mate? Even a novice at sewing can create decorative know the secret? This guide is proof that diet¬
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how to transform ordinary rooms into extra¬ scheme: create curtains, draperies and slip¬ want. Here are 57 recipes to please the most
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colors. Decide what “mood” you want . . . to choose the right fabrics and colors for your Nifoise . . . Artichokes Vinaigrette . . . Peas
The Amy Vanderbilt Success Program for Women
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Split Run Test Ad B

Which did better? (Answer at the bottom of page 650)

Courtesy: Doubleday & Co., Inc.

Advertising Agency: Altman, Vos & Reichberg, Inc.

649
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Money Back Guarantee
mailing charge.
How Can We Break All Record
If you aren’t absolutely delighted with our
discounts (up to 79%)—return items within
BEST SELLERS AT Vi PRICE $2.49
and Tape Club Rules! Herb Alpert • Simon & Garfunkel • Ramsey Lewis
10 days and membership fee will be re¬
We arc the only maior record and tape club funded AT ONCE! Join over one million Belafonte - Supremes • Mamas & Papas
NOT OWNED . . NOT CONTROLLED . . . budget wise record and tape collectors now. TheCream • Eddie Arnold • Monkeesand others...
NOT SUBSIDIZED by any record or tape Mail coupon to: Record Club of America plus . . . from 50% to os high os 79% discount on
manufacturer anywhere. Therefore, we are
Club Headquarters, York, Pa. 17405 fomous lobels-. RCA Victor, Capitol, Columbia, Decco,
never obliged by company policy to push Liberty, Motown, Elektro, Vanguard, and others.
any one label, or honor the list price of any Your $2.50 membership fee entitles you to
manufacturer. Nor are we prevented by dis¬ buy or offer gift memberships to friends,
tribution commitments, as are other major relatives, neighbors for only $1.00 each TAPE DISCOUNTS-33Vz% -ALL LABELS
record or tape clubs, from offering the very with full privileges. You can split the
newest records and tapes.
Cartridges, Cassettes and Reel-to-Reel
total between you-the more gift members
Join Record Club of America now and take you get-the more you save!
advantage of this special INTRODUCTORY
HALF PRICE membership offer. Mail cou- 39C © 1969 RECORD CLUB OF AMERICA, INC. World's largest Master Catalog of
available IP's to choose from when
_you join Record Club ot America
Lists over 15,000 available LP's on all labels! Clas¬
sical—Popular—Jazz—Folk—Broadway & Hollywood
sound tracks-Spoken Word-Rock and Roll-Comedy

M -Rhythm & Blues-Country and Western-Dancing-

Listening—Mood! No Exceptions!
Master Tape Catalog of avaitable car¬
tridge, cassette and reel-to-reel tapes
sent on request at no extra member¬
ship fee.

RECORD CLUB OF AMERICA X92IX 1

Club Headquarters, York, Pa. 17405
Yes-Rush me lifetime Membership Card, Free Giant Master
LP Catalog (check box below if you also wish Master Tape
Catalog) and Disc & Tape Guide at this limited Special
Introductory Half Price membership offer. I enclose-NOT
the regular $5.00 membership fee-but $2.50. (Never another
club fee for the rest of my life.) This entitles me to buy any
LP's and Tapes at discounts up to 79% plus a small mailing
and handling charge. I am not obliged to buy any records or
tapes-no yearly quota. If not completely delighted I may
return items above within 10 days for immediate refund of
membership fee. Q Also send Master Tape Catalog
Also send__Gift Membership(s) at $1.00 each to the
names on attached sheet. Indicate master catalogs required.
I enclose Total of $_covering one $2.50 Lifetime
Membership plus any Gift Memberships at $1.00 each.

.State. .Zip.

Split Run Test Ad A

Answer to Test on pp. 648—649: Ad B

630
 Why did over 3/4 million record and
tape collectors pay $5 to join
Record Club of America ANNOUNCING...
SPECIAL INTRODUCTORY
HALF-PRICE MEMBERSHIP

when other record or tape clubs

would have accepted them free?
ONLY $2.50
MAIL COUPON BELOW TODAY/
Columbia
Capitol RCA Victor Stereo Tape ( OMl’LKTi: TAPE SERVICE AT NO
Columbia
Record Club Record Club Record Club Cartridge
RECORD CLUB OF AMERICA
EXTRA MEMBERSHIP FEE
Service
(as advertised (as advertised (as advertised (as advertised

CAN YOU
.in Playboy in TV Guide
uary 1970) Sept .20,1969)
in McCalls
May 1969)
in Esquire
Nov. 1969) LP DISCOUNTS TO 79%- PRICES AS
Choose any LP or tape
CHOOSE FROM
on any label! No excep¬ LOW AS 3iJC PER RECORD!
AIL LABELS7
tions! Over 300 differ¬ Typical all-label "Extra Discount” sale
LP's OR TAPES.
ent manufacturers
INCLUDING
CARTRIDGE. including Columbia,
RCA Victor, Capitol,
BUDGET SERIES AT % PRICE $ .99
CASSETTE AND
Angel, London, etc.
Frank Sinatra • Petula Clark • Glen Campbell
REEL-TO-REEL
Nat Cole • Dean Martin • Dave Brubeck
TAPES7
Jack Jones • John Gary and others...
MUST YOU BUY
A •MINIMUM"
NUMBER OF
No obligations! No
yearly quota! Take as
BUDGET SERIES AT % PRICE $1.25
RECORDS OR many, as few, or none Woodie Guthrie • Oistrakh • Richter • Callas
TAPES7 at all if you so decide! Rod McKuen • Tebaldi • Steinberg • Krips
HOW MANY7 Peter Seeger • Munch • Casals and others...
HOW MUCH
MUST YOU $41.88 ZERO
You don't have to spend
a penny- because you're
BEST SELLERS AT % PRICE $2.49
SPEND TO not "legally obligated' Herb Alpert • Simon & Garfunkel • Ramsey Lewis
to
FULFILL YOUR to buy even a single
IE GAL $47.88 DOLLARS record or tape'
Belafonte • Supremes • Mamas & Papas
OBLIGATION7 TheCream • Eddie Arnold • Monkeesandothers...
plus . . Irom 50% lo as high os 79% discount on
CAN YOU BUY You get discounts up
ANY RECORD ■ | ttjA VCI 79% OFF. Guaran- fomous labels: RCA Victor, Copilol, Columbia, Decco,
OR TAPE YOU NO NO ALYYATo! teed never less than a Liberty, Moiown, Elektra, Vonguard, and others.
WANT AT A third! No exceptions!
DISCOUNT7
There are no cards TAPE DISCOUNTS-33%% -ALL LABELS
DO YOU EVER which you must return.
RECEIVE
Cartridges, Cassettes and Reel-to-Reel
Only the records and
UNORDERED YES YES YES NEVER! tapes you want are sent * Choose any LP or tape ★ Every record and tape
RECORDS OR and only when you ask on any label! No excep¬ brand new, first quality,
TAPES7 us to send them
tions! Cartridges and factory fresh-and guar¬
HOW LONG cassetes included! anteed fully returnable!
MUST YOU
5 to 6 5 to 6 5 to 6 , 5 to 6 NO LONG Your order processed * No "quotas" to buy. ■k All orders shipped
WAIT FOR same day received. No
Take 0 records or tapes same day received-no
SELECTIONS weeks weeks weeks weeks WAITS! shippine °n cycle or 100! long waits!
TO ARRIVE7
■k Save! Discounts up to ■k No "hold back" on
79%! Prices as low as exciting new records and
AT LAST A RECORD CLUB WITH NO “OBLIGATIONS”—ONLY BENEFITS! 990 Per LP! tapes!
This is the way you want it-lhe only record PRICE... just $2.50. You SAVE $2.50. This World’s largest Master Catalog of
and tape club with no strings attached! Ordi¬
nary record or tape clubs make you choose
entitles you to LIFETIME MEMBERSHIP
-and you never pay another club fee. FREE! available LP’s to choose from when
you join Record Club of America
from just a few labels-usually their own!
They make you buy up to 12 records or tapes Look What You Gel Lists over 15,000 available LP's on ail labels! Clas-
a year usually at full price--to fulfill your Lifetime Membership Card— guarantees you sical-Popular-Jazz-Folk-Broadway 8 Hollywood
obligation. And if you forget to return their brand new LP’s and tapes at discounts up sound tracks-Spoken Word—Rock and Roll-Comedy
monthly card-they send you a record or tape to 79% ... Never less than % off. -Rhythm 8 Blues-Country and Western-Dancing-
you don’t want and a bill for $4.98, $5.98, Free Giant Master Catalog — lists available Listening-Mood! No Exceptions!
$6.98 or $7.98! In effect, you may be charged LP’s of all labels! Over 15,000 listings! Also, Master Tape Catalog of available car
almost double for your records and tapes.
But Record Club of America
FREE Master Catalog of Tapes sent on
request. FREE! tridge, cassette and reel-to-reel tapes
sent on request at no extra member
ship fee.
Ends All Thai! Disc and Tape Guide — The Club’s FREE
Magazine, and special Club sales announce¬
1
H
We’re the largest and only all label record
and tape club in the world. Choose any LP ments which bring you news of just-issued RECORD CLUB OF AMERICA X719C
or tape, including cartridges and cassettes new releases and extra discount specials.
Club Headquarters, York, Pa. 17405
on any label... including new releases.
No exceptions! Take as many, or few, or no Guaranteed Same-Day Service Yes-Rush me lifetime Membership Card, Free Giant Mastei
selections at all if you so decide. Discounts Record Club of America’s own computer LP Catalog (check box below if you also wish Master Tape
are GUARANTEED AS HIGH AS 79% system ships order same day received! Every Catalog) and Disc and Tape Guide at this limited Special
OFF! You never pay full-price! You get best record brand new, fully guaranteed. Introductory Half Price membership offer. I enclose—NOT
sellers for as low as 99tf, plus a small han¬ the regular $5.00 membership fee-but $2.50. (Never another
dling and mailing charge. Money Back Guarantee club fee for the rest of my life.) This entitles me to buy any
If you aren’t absolutely delighted with our LP's and Tapes at discounts up to 79% plus a small mailing
How Can We Break All Record discounts (up to 79%)-return items within and handling charge. I am not obliged to buy any records or
and Tape Club Rules! 10 days and membership fee will be re¬ tapes-no yearly quota. If not completely delighted I may
We are the only major record and tape club funded AT ONCE! Join over one million return items above within 10 days for immediate refund of
NOT OWNED ... NOT CONTROLLED ... budget wise record and tape collectors now. membership fee. □ Send Master Tape Catalog
NOT SUBSIDIZED by any record or tape Mail coupon to: Record Club of America
manufacturer anywhere. Therefore, we are Also send_Gift Membership(s)at $1.00 each to the
Club Headquarters, York, Pa. 17405
never obliged by company policy to push names on attached sheet. Indicate master catalogs required.
any one label, or honor the list price of any I enclose Total of $__covering one $2.50 Lifetime
manufacturer. Nor are we prevented by dis¬ Your $2.50 membership fee entitles you to Membership plus any Gift Memberships at $1.00 each.
tribution commitments, as are other major buy or offer gift memberships to friends,
record or tape clubs, from offering the very relatives, neighbors for only $1.00 each Print Name_
newest records and tapes. with full privileges. You can split the total
Join Record Club of America now and take between you—the more gift members you
Address.
advantage of this special INTRODUCTORY get-the more you save!
HALF PRICE membership offer. Mail cou¬
pon with check or money order-NOT for City. -State. -Zip-
regular $5.00 fee—but only HALF THAT 38 R-3 © 1970 RECORD CLUB OF AMERICA, INC. L
II

Split Run Test Ad B

Which did better? (Answer at the bottom of page 653)

Courtesy: Record Club of America

Advertising Agency: Altman, Vos & Reichberg, Inc.

651
 LIFE magazine calls it mm, dsseeisty Bias* m fti Sssess-ttw s»S«fe ef a gsai tmk

“The mightiest,most astonishing Herel a taste of what

single cook book the Cook Book Guild has to offer you...
in the history
of eating” Take any 3
cookbooks for sl
U $&u i iim Bo-s?k <kii?d sne? agr«e to oaty
four seifirc&ou?; or oftemates t&v&r ooxt two yesrs.

A Direct-Mail Test

These are the fronts of four folders making the same offer. One outpulled the others
by far. Which? (Answer bottom of page 655). Courtesy: Doubleday & Co, Inc.
Advertising Agency: Altman, Vos & Reichberg, Inc

The Cook Book Guild invites you to...

1' our choice of

Behind every any cook book
in this announcement
great cook... pirn,*.
 Direct-?nail tests. Split-run testing is also done with direct mail. In 653
Direct-
testing ads, every other name on the list is sent mailing A; the other half of
Response
the names are sent mailing B. The order cards are keyed and the results are Advertising
tabulated.
But to get statistically meaningful differences, you must use a big
enough sample of a mailing list to produce enough responses to provide a
clear answer as to which is the better ad. If mailing piece A produces four¬
teen orders while mailing piece B produces eleven, the result of the "test”
is meaningless. And in order to make our "test beds” large enough, we have
to have some idea of the percentage of response to expect. This will vary
enormously by medium and by proposition.
Most direct-response advertisers expect a full-page magazine ad to
pull from 0.05 percent to 0.20 percent of circulation; in other words, from
one half of a response per thousand to two responses per thousand. This is a
typical range of figures, but results vary enormously, of course. According to
Vos, direct-mail results will usually range between 0.7 percent and 5.0 per¬
cent of names mailed—in other words, from seven orders per thousand to
fifty orders per thousand. You will notice that the ratio of response per
thousand between direct mail and magazine space is roughly on the order
of 10 or 20 to 1. However, the same ratio applies to the cost per thousand
of the two kinds of media. Therefore, many advertisers find that their cost
per order for both space and direct mail is about the same.
The whole principle of mail-order testing comes down to these im¬
portant elements:

1. Make sure that the names chosen for a direct-mail test are a fair
sample of the rest of the list.

2. Make sure that the mailings that are to be compared with each
other are identical in every respect except the one variable that is
being tested. (Don’t try testing several variables at a time in order
to save time or money. Neither is saved.)

3. Keep accurate records of replies.

4. Do not change or attempt to improve the mailing or condition of

mailing once a test has proved satisfactory. If any improvement in
the mailing suggests itself, test it out before using it on the bal¬
ance of the mailing. The test may show that it is no improvement
at all.

5. First of all, test the big differences in offers or formats. Then, if

you have the time, patience and money, test small refinements.

The conclusions drawn from a single mailing do not necessarily hold

good for another product, another list, another season, or another offer.

Answer to Test on pp. 650-651: Ad A.

 «;#.!»08TA0*
PAID
&I«AT *«C« :
Hew »o»" ,
Read for fen days, HRMIT NO *OPI

entirely at LIFE’S
expense ....

41W0UHCING in imports
K® READERS RHO ranj
SUBSCRt®**
RESERVA-nor
first class ** ®2ffiSTAjro iue f0RID
PCRMIT NO 22 CARO for
CHICAGO, 'LL.

WORLD LIBRARY **

lD,iUi t0 Re«^e a Del^e,

lal-Edition Copy of Jim __

Introducti<
ta ESPeCia11^ «•»*. info™
Without Any Obligation
»OST*Gt

IlK/Rt
POSTPCf
«*) a lopyZV^ **«•»
^ 1 a ^“artable book -
aC”®
"""• *“ volMe ta
WORLD LIBRARY

^^“^yoTSlT00^
th*8 special-t
enclosed
■edition
’ iSS days

f ns B K
:
H„,l* M/c"'»a" A
Chicago Illinois

§$*» r#T

Courtesy: Time-Life Books

Test Mailings

Each of these mailings consisted of a two-color letter, a four-color illustrative folder

and return card, mailed in a colorful envelope. Each was devoted to a book describ¬
ing a different country—India, Japan, France, and Russia. The test was to see
whether the book of any one country would appeal more to readers than that of
any other country.
Assuming the winner (Japan) had 100, Russia would receive a rating of 93, India
89, France 51.
Based on this test, 8 million mailings were issued the following year.

654
 Planning and Producing Direct-mail Advertising 633
Direct-
Response
1. Decide general format. Advertising

2. Decide what printing process is to be used.

3. Seiect paper.
4. Check actual dummies with post office for weight and postage.
5. Decide on lists and size of test runs.
6. Get printing estimates.
7. Select printer; arrange for place of delivery, including envelopes.
8. Select lettershop or other mailing facility.
9. Place printing order.
10. Get proofs.
11. Get delivery.
12. Mail.

Television in Direct-response Advertising

The biggest boom in the use of television by national advertisers is by the

direct-response advertisers. This industry has jumped in its use of television
at the rate of 68 percent from 1970 to 1971. Direct-response TV has now
passed the $50 million mark, a considerable figure for a medium that a few
years ago was not considered a "direct-response medium."
Innovative marketers have found new methods of using TV that
produce cost-per-thousand responses comparable to direct mail. Direct-response
advertisers have found that television expands their markets by reaching pros¬
pects who were missed by traditional media. Record and book clubs, insurance
companies, and direct marketers are among its biggest users.2

Differences in Use of TV for

Direct-response Advertising

The yardstick of "cost per order" applies to television as it does to

any other medium. The success of direct-response advertisers in television
began when they broke away from the traditional time-buying philosophy of

2 Jacob A. Evans, addressing the Mail Advertising Club of Chicago, September 8,

1971.
Answer to Test on p. 652: Ad C.
 656 national advertisers. National advertisers want to reach as many people as
®ther possible at the lowest rate per thousand. They go by ratings, a fact that pushes
Worlds of 1 _ . L . . . . , , ,
Advertising them into expensive prime time. Direct-response advertisers have tound there
is no correlation between ratings and cost per order. And they have found
that the low-cost spots produced low-cost orders.
Accordingly, they have gone for late-night shows, weekends, and
other off-time periods, where the rate is low to start with. Also, at those periods
they can afford the time to tell their full sales story, often using 120 seconds,
as compared with the national advertiser’s favorite 30-second spot. Some even
use three minutes within a 15-minute program—using one minute to "set
the stage," and later two minutes, giving the viewer time to get pencil and
paper to take down the address, completing the sale.

Trends in Direct-response Advertising

Direct-response advertising—and particularly direct-mail advertising—has

grown greatly in recent years and will continue to grow rapidly in the years to
come—despite the increased postal rates. The chief reason for this is the com¬
puter. Traditional mail-order companies now use these sophisticated electronic
devices to provide them with data that makes media usage and mailing-list
usage much more effective and profitable. And now other large advertisers—
such as department stores and the big gasoline companies—have discovered
that their computer can be much more than a supersonic accounting tool; it
can also furnish them with the names and addresses of mail-order prospects,
and therefore becomes an extra source of profit.
The next step may be electronic in-home ordering. Your cable-TV
screen will show you a range of men’s neckwear. If you see something you
like, you’ll simply push a few buttons on your set, the order will be received
instantly and electronically, and somewhere a computer will be making this
note: "Mr. Jones likes red neckties.”

Review Questions

1. Distinguish among direct market¬ 4. Discuss several ways in which di¬

ing, direct-response advertising, rect-response advertisers use media,
mail-order advertising, and direct- including TV, differently from most
mail advertising. other advertisers.

2. In terms of consumer response, what

5. Distinguish between house lists and
differentiates direct-response adver¬
outside lists; between compiled lists
tising from most other advertising?
and response-derived lists.
3. Explain why direct-response adver¬
tising is usually wordier than other 6. Describe the role and functions of
advertising. the list broker.
 7. Discuss some of the criteria for 9- Explain how a split-run test works. 657
good names for direct-response ad¬ Direct-
vertising. 10. Discuss the main elements of con¬ Response
ducting meaningful direct-response Advertising
8. Describe some of the special testing.
scheduling problems faced by the
direct-mail production manager.

Reading Suggestions

Business Week. "Direct-Mail Ads Will Stone, Bob, "Four Assets, Four Liabili¬
Get More Direct,” November 27, ties of Today’s Direct Mail,” Adver¬
1971, pp. 84, 86. tising Age, June 1, 1970, pp. 50-51.
Hodgson, R. W., Dartnell Direct Mail Stone, Bob, "Three Ways for Mail Ad¬
and Mail Order Handbook. Chicago: vertisers to Boost Their Profits,” Ad¬
Dartnell Corporation, 1964. vertising Age, May 31, 1971, pp. 33-
Rapp, Stanley, "How to Find Your 34.
Way Through the Treacherous Test¬ Tobolski, Francis, "Direct Mail: Image,
ing Maze,” The Reporter of Direct Return & Effectiveness,” Journal of
Mail Advertising, 1967. Also in Advertising Research, August 1970,
Kleppner and Settel, Exploring Ad¬ pp. 19-25.
vertising, p. 232.
29
Business Advertising

Although more money is spent on advertising to consumers than on any

other form of advertising, more dollars are involved in the sales to business
buyers than in those to consumers.1
This expenditure represents advertising directed to the distributive
trades, referred to as trade advertising, and advertising to those who manu¬
facture the goods, and do the building and construction, referred to as in¬
dustrial advertising. Business advertising also includes advertising in profes¬
sional journals to physicians, dentists, architects, and others who earn their
living by practicing a profession; this is referred to as professional advertising.

Trade Papers

The term trade paper is particularly applied to business publications addressed

to those who buy products for resale, such as wholesalers, jobbers, retailers.
Typical examples are: American Druggist, Supermarket, Chain Store Age,
Hardware Retailer, Jobber Topics (automotive), Women’s Wear Daily, Home
Furnishings, whose points of view are revealed in their titles.
There is hardly a business engaged in distributing goods which does
not have a special trade paper to discuss its problems. Trade papers are the
great medium for reporting the merchandising news about products and
packaging, prices, deals and promotions of the manufacturers who cater to
their particular industries. The chain store field alone has 23 such publications.
Druggists have a choice of 34, while 61 different publications are issued for
grocers. There are many localized journals, as California Food News, Illinois
Beverages Journal, New England Hardware Journal, Texas Food Journal.

Controlled Circulation

The business press includes paid circulation and controlled circulation.

Most circulation is controlled circulation, which represents free cir-

1 Philip Kotler, Marketing Management (Englewood Cliffs, N.J.: Prentice-Hall,

Inc., 1967), p. 20.

638
 PUBLISHER’S STATEMENT
For 6 Month Period Ending PROGRESS IVE GROCER
DECEMBER 1971 Butterick Div., American Can Company

BRA 708 Third Avenue, New York, New York 10017

BUSINESS PUBLICATIONS AUDIT OF CIRCULATION, INC.
360 Park Avenue South, New York, N.Y. 10010 official publication of None
No attempt has been made to rank the information contained in this report in order of im¬
portance, since BPA believes this is a judgment which must be made by the user of the report ESTABLISHED 1922 ISSUES PER YEAR 12

FIELD SERVED

Super markets, convenience stores and food markets; their headquarters and executives; and voluntaries, coopera¬
tives, wholesale grocers; rack jobbers and food brokers.

DEFINITION OF RECIPIENT QUALIFICATION

The following are eligible to receive PROGRESSIVE GROCER:

Chain and independent super markets, convenience stores and food markets.
Chain executives, buyers and store supervisors.
Voluntary and co-operative headquarters, executives, buyers and store supervisors.
Wholesale grocers, executives, buyers and store supervisors.
Rack jobbers.
Food brokers.
Food associations, colleges and government food executives.

AVERAGE NON QUALIFIED DISTRIBUTION 1. AVERAGE QUALIFIED CIRCULATION BREAKDOWN FOR PERIOD

Qualified Non-Paid Qualifi ed Paid Total Qualified

Copies Copies Percent Copies Percent Copies Percent

Advertiser and Agency. *7,342 Single. 8l ,296 100.0% - - 81,296 100.0%

Non-Qualified Paid. Group . - - - - - -

Rotated or Occasional. Association. _ _ - _ _ _

Samples. _ Gift.'. _ _ . _ _ _

All Other. 6,962 Bulk. - - - - ■ - -

(See Paran) T0TAL

14,304 TOTALS 81,296 100.0% - - 81,296 100.0%

U.S. POSTAL MAILING CLASSIFICATION CONTROLLED CIRCULATION

2. QUALIFIED CIRCULATION BY ISSUES WITH REMOVALS AND ADDITIONS FOR PERIOD

1971 Qualified Qualified Total Number Number 1971 Qualified Qualified Total Number Number
Issue Non-Paid Paid Qualified Removed Added Issue Non-Paid Paid Qualified Removed Added

July 80,630 1,732 2,436 Oct 82,267 111 1,874

August 80,104 1,741 1,215 Nov 81,757 1,687 1,177

00

Sept 8l 1 1,877 Dec 81,849 669 761

TOTALS 7,417 9,340

Publisher’s Statement

The interesting thing on this first page of a publisher’s statement of a controlled

circulation tradepaper is the record of "Qualified Circulation.’’ To get the publi¬
cation without cost a person must be eligible, as stated above; he must make a re¬
quest, in writing, and annually renew the request, in writing.
 #1 Sunburn Remedy...#1 Seller

Plus 5% for promotional display- Plus 5% advertising allowance'

1971 Solarcaine Counter Unit Deal #2059

UNIT CONTAINS
QUANTITY ITEM SELLS FOR
BUY: 9 Each Lotion, 3 oz., $1.49.$13.41
3 Each Lotion, 6 oz., $2.19. 6.57
3 Each Cream, 1 oz., 92c. 2.76
2 Each Cream, 2 oz., $1.49. 2.98
3 Each Aerosol Spray, 4 oz., $2.19. 6.57

FREE: 1 Each Cream, 1 oz., 92c.92

1 Each Aerosol Spray, 4 oz., $2.19. 2.19
1 Each Lotion, 3 oz., $1.49. 1.49
TOTAL RETAIL VALUE. . . $36.89

SELLcSo™ 111;!! I PROFIT $14.28=38.7%*

Phone your favorite supplier today.

9-5/8" wide X 7" deep x 18-1/2" high.

#1 in Advertising...#! in Net Profits!

Multi-million dollar ad campaign to 100 selling messages per week, Solarcaine hard at the local level.
pre-sells Solarcaine . . . and keeps network and spot, on 850 stations.
Outdoor, Skytyping. Thousands of
the big fat profit-dollars rolling in.
48 Leading Magazines. Full page outdoor boards in major markets.
color ads in 48 leading National Plus SKYTYPING — reaching
Network TV. Full-color commercials Magazines, including Reader’s Di¬ 15,000,000 potential customers with
on TV hits like: Marcus Welby, M.D., gest, delivering over 250,000,000 messages 20 miles wide above lead¬
Love, American Style, Saturday reader messages. ing beach areas.
Night At The Movies, Sunday Night
Movies, The Bold Ones, other top- Full-Color Sunday Supplement Ads.
rated shows. Big space ads in 82 leading news¬
Network Radio. All 3 networks. Up papers coast-to-coast . . . selling Memphis, Tennessee 38101

PROMOTION ALLOWANCE PROGRAM AVAILABLE ON PURCHASES FROM WHOLESALERS invoice of qualifying order with photograph or description of display and letter certifying
that merchandise was displayed continuously in a prominent location for a period of 30
•One order—5% for promotional display and 5% for advertising on one order only days or more during May, June, July.
amounting to $60.00 or more of Coppertone, QT, Solarcaine and Mexsana one or assorted 5% Advertising Allowance—Newspapers, Handbills, or Circulars. Advertising must be
products purchased from Wholesaler after January 1, and delivered before June 1, 1971. completed before July 15,1971.
Allowances are based upon the net invoice amount after deducting all discounts, and shall Ask your Wholesaler's salesman for further details pertaining to performance requirements,
be paid by Plough, Inc. after receipt of required proof of performance. or write direct to Co-op Advertising Department, Plough, Inc., P.0. Box 377, Memphis,
Payment requirements for 5% promotional display allowance. Submit Wholesaler's Tennessee 38101

A Trade Paper Advertisement

Addressed to druggists, talks profits, based on a counter display of

assorted Solarcaine products, at a special deal price, plus promotional
display and advertising allowances. Stresses also the advertising de¬
signed to pre-sell Solarcaine to the consumer.
We’ve just added
a third season*
of Simoniz sell!
We're out there 3 seasons out of the year
—not just two like everybody else. That's
because we do things differently. For
instance: we sell right into the fall sea¬
son with a tough ''Winter Protection”
commercial for television, radio and print.
Plus a durability story you have to see
to believe — and you will see it on up¬
coming commercials.
Any wonder we're first in the car-wax field with
Vista and Master Wax products?

SPRING, SUMMER AND

FALL ADVERTISING IN:
• RADIO
• TV (Network and Spot)
• MEN'S magazines
• SPORTS magazines
• CAR BUFF magazines
• SCIENCE & MECH. magazines

Automotive products
bring husband in to
grocery store:
1. He spends more
2. She spends 67% more
($8.25 VS $13.81)

Will you have it to sell when

they come in to buy it?

A Trade Paper Advertisement

Addressed to supermarkets, this advertisement tells what Simoniz is

doing to expand the consumer buying season for its products. Stress¬
ing also that automobile products increase store traffic.

661
 662 culation to a carefully selected list of those who are in a position to influence
Other
sales; furthermore, they must express in writing a desire to receive, or con¬
Worlds of
Advertising tinue to receive, the publication in order to qualify for the list. They must
also give title and function.

Circulation Audits

The leading publications belong to the Business Publications Audit

of Circulation, Inc. (BPA). This organization serves in the business field the
same function that the Audit Bureau of Circulations performs in the consumer
field. In their audit of circulation they place particular attention upon the
qualifications of all those on the controlled list, and when they last indicated
they wanted the publication. Some publications have both ABC and BPA
audits.
A third auditing group is the Verified Audit Circulation Company
(VAC). Its standards differ somewhat from those of BPA.

The AIA Media Data Form

For many years, every publisher of a business or professional publi¬

cation supplied additional data about his publication in whatever form he
wished, covering such topics as he wished, to the confusion of all who tried
to use such information in making media comparisons and planning schedules.
Finally, through the efforts of the Association of Industrial Advertisers and
with the cooperation of other interested associates, an agreement was reached
as to the basic information to be given in standardized sequence and pre¬
sented in a uniform way. This is referred to as the AIA Media Data Form,
which an increasing number of publishers are using.
Many business publications—especially the smaller ones—do not
offer any audit circulation report.

Trade Paper Copy

No matter what the field, all trade papers have a common editorial
policy—to tell the dealer how to make more money in his operation.
An issue of a hardware dealers’ magazine had articles on "Gets Four
Annual Turnovers from Stock of 75 Gadgets,” "New Store Front Increases
Business by 30 Percent,” "Contest Attracts Fishermen to Lyndale Store.” The
advertising likewise discusses not how good a product is—that is taken for
granted—but how it will help the profit picture of the store. Among the sub¬
jects featured are news about the product, such as:

—a change in the product

—a new style of packaging of a present product
—a new display idea
—a new consumer deal
 —a new store deal 663
Business
—a plan for a new advertising campaign involving the retailer (cou- Advertising
poning)
—a new promotional idea
—a new in-store suggestion for improving sales of the advertised and
related products

and any other idea that will help sales and reduce expense.

Publication Name: Progressive Grocer

REGISTERED

AIA Media Form MEDIA DATA FORM

The first page of a form DAryjUj \Arlp2

EXECUTIVE SECRETAF
used by industrial pub¬ MEDIA COMPARABILITY COUNCIL
lications to "assist ad¬
vertisers and agencies in This form is designed to be used in conjunction with Standard Rate and Data,
(SRDS) and Canadian Advertising Rates and Data (CARD), publisher's rate card,
their media analysis by circulation audit (or statement of circulation) and other available data. Its purpose is to
assist advertisers and agencies in their media analysis by helping publishers to present
helping publishers to pertinent information in a concise and orderly manner.
This Media Data Form is sponsored and approved by the Association of Industrial
present information in a Advertisers, Association of National Advertisers, American Association of Advertising
Agencies, American Business Press, Society of National Association Publications and
concise and orderly Association of Canadian Advertisers. It may be used in conformity with the bylaws and

manner.” Each subject rules of the Audit Bureau of Circulations, the Business Publication Audit of Circulation,
Verified Audit Circulation Corp. and the Canadian Audit Board by member publications.

is in uniform numbered Registration of this form by the AIA Media Comparability Council does not

sequence.
constitute validation of the information contained herein or endorsement of the
publication by any sponsoring organization. No attempt has been made to value-
judge the items herein or place them in any rank order. Responsibility for proper use of
a. cd
this information rests entirely with the media planner.
0)
S> ro
1. All information printed in this form is current as of December 31, 1971

COO
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Publication Name: Progressive Grocer = 3
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street Address: 708 Third Avenue
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City, State, or Province: New York , New York ZiP: 10017
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Publishing Company: The Butterick Division, American Can Co,
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Is the circulation of this publication audited by ABC, BPA, VAC or CCAB? YeS ' |J2s"
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3. if Yes, by whom? Business Publications Audit of Circulation, Inc. s anti:
Show symbol:
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If not, explain: cn —■ A

Stnf lir
 664 Industrial Advertising
Other
Worlds of
Advertising Every business establishment that makes something or renders a service
has to buy something—raw and finished materials, machinery, tools, equip¬
ment, and possibly the materials for erecting its own buildings. It takes
many men with technical skill to decide what to buy. Advertising addressed to
the men responsible for buying the goods needed to make products and render
services is called industrial advertising. Such advertising is designed to reach
purchasing agents, plant managers, engineers, comptrollers, and others who
have a voice in spending the firm’s money for materials and equipment.

The Uniqueness of Industrial Advertising

Industrial advertising is addressed to men who have their own approach to

making business decisions. For example:

1. Buying is done with a sense of professional responsibility, asking,

''Will this prove to be the best choice?” A poor decision will be
around to haunt all who shared in it.
2. Buyers purchase to meet predetermined specifications, not on im¬
pulse.
3. Many men may be involved in a decision—a scientist, a designer,
an engineer, a production manager, a purchasing agent, a comp¬
troller—each approaching the problem from his special viewpoint.
4. Decisions are made after many demonstrations, much inquiry,
many meetings.
5. With so many individuals involved, so many actions to be taken,
with so much money that may be involved, there is often a big
time lag between the moment it was decided to consider a pur¬
chase and the final decision.

One may get an idea of the complexity of reaching an industrial buy¬

ing decision from these cases in a report issued on the subject by Time, Inc.

An air-conditioning exhaust system—the kind found in office buildings

and factories, as opposed to a room air-conditioner for home use. The
process of purchasing an air-conditioning exhaust system can be very
complicated. Some 16 actions were taken by six individuals within
the company.
A case loader—a packaging machine used for loading small, packaged
bottles into corrugated containers. Some 13 actions were taken by
nine individuals or groups of individuals in middle management, top
management, and purchasing.
 An encoder drum—part of an electrical system needed in a Depart¬ 663
Business
ment of Defense project. Some 12 actions were taken by three indi¬
Werbung
viduals within the company. In addition, four suppliers were involved,
as well as the U.S. government offices concerned with this project.
A desk calculator—the kind normally found in offices throughout the
United States. It is a lightweight, semiportable, and highly versatile
machine small enough to be placed on a desk, as opposed to a special
"table” by the desk. Some eight actions were taken by four individuals
or groups of individuals within the company.
Carpeting—the kind of floor covering normally found in offices and
reception rooms. Some 10 actions were taken by 11 individuals within
the company.2

It will be seen from the foregoing that anywhere from three to

eleven different individuals had a say in the final buying decision. The problem
is to reach all who may be involved.

The Effectiveness of Industrial Advertising

McGraw-Hill made a study to measure the effect of advertising on the cost of

selling an industrial product. They gathered figures from 893 industrial com¬
panies and divided them into two groups. They ranked the companies from
lowest to highest according to advertising as a percentage of sales expenses,
thus dividing the "higher” from the "lower” advertisers.
Then they examined total selling costs (including personal salesmen),
measured as a percent of total sales, of both the higher advertisers and the
lower advertisers. They found that higher advertisers had total sales expenses
(including advertising) that were 21 percent below that of the lower adver¬
tisers.3
The Arthur D. Little Company reported on the findings of 1,100
studies of the effectiveness of industrial advertising. Among the conclusions
reached by the various studies are the following:

Buchen Study—companies that maintain their advertising in recession

years have better sales and profits in those and in later years.
Harnischfeger Study—industrial advertising reaches purchasing in¬
fluences not normally reached by the salesman.

2 Based on a study conducted for Time magazine by Dr. Emanuel Demby, Fairleigh
Dickinson University. Published courtesy of Time, Inc.
3 "How Advertising Affects the Cost of Selling," a McGraw-Hill Research Report
(New York: McGraw-Hill Book Company, 1963).
 No. 5 NC Jig Grinder shown grinding a master gage, a product of ing wheel is dressed with radius-angle attachment on Moore's
Moore's new Gage Division. The gage is used for checking out self-contained Universal Wheel Dresser. This newly developec.
taper probe-type Coordinate Measuring Machines. Tapered grind¬ accessory is readily adaptable to all Moore Jig Grinders.

Moore Special Tool Co., which brought jig grinding to in¬

dustry 30 years ago, and has pioneered every major devel¬
opment in jig grinding since, now introduces the Nos. 4
and 5 Jig Grinders.

The new machines, with travel on the No. 4 of 18 in.

x 32 in. (450 mm x 800 mm) and 24 in. x 48 in. (610 mm x
1200 mm) on the No. 5, make it possible to jig grind larger
workpiece sizes—to accuracies in the millionths.

The No. 4 and No. 5 Jig Grinders incorporate all of the

construction features and ultra-accurate measuring system
which have made the Moore No. 3 Jig Grinder a standard
of excellence and precision throughout the world.

Both of the new machines Standard Models

— — carry
Moore's 10-year guarantee of accuracy.
The longer travels of the No. 4 and No. 5 Jig Grinders
make the unique efficiencies of numerical control all the
more significant. Both machines are available in point-to-
Shown here is a Moore No. 3 Continuous Path Jig Grinder wib
point and continuous path NC with General Electric Mark
General Electric Mark Century Numerical Control. Many of thes
Century* controls—as well as in standard models.
machines are being used in industry at as much as 10:1 time sau
•Trademark of General Electric Co. ings over conventional jig grinding.

Industrial Advertising

666
in the largest size range
Introducing the No. 4 and No. 5
Both the No. 4 and No. 5 Precision Jig Grinders employ the same measuring
system used in Moore's No. 4 and 5 Universal Measuring Machines.
Repeatability of settings is ±5 millionths inch (0,15 m). The X and Y
axes have either standard inch or metric lead screws and are
power-driven. Spindle housing is also power-driven.

Other features include remote control for wheel outfeed and spindle
clutch, automatic clamping and unclamping on all three axes, and
double-V, frictionless roller-way construction. .

In longitudinal and cross travel, the greatest error in any

inch is 30 millionths inch (0,8 Mm). Total accumulative error
in the longitudinal travel is 150 millionths inch (3,8 Mm),
and in the cross travel 90 millionths inch (2,3 Mm).

The No. 4 and No. 5 Moore Jig Grinders can be supplied

with General Electric Mark Century 7500 series Numerical
Control systems for point-to-point or continuous path
operation. These controls can be provided with an
additional rotary axis control for angular positioning.

Moore Readout (as shown in photos) is a

recommended option available in either inch
and/or metric, with 0.00001 in./0,0001 mm
resolution.

Write us for complete details.

Moore No. 5 Moore No. 4

Precision Jig Grinder Precision Jig Grinder
with 24 inch x48 inch travel
with 18 inch x 32 inch travel
(610 mm x 1200 mm).
(450 mm x 800 mm).

bun
now
©17
MOORE SPECIAL TOOL CO., INC. pail
Bridgeport, Connecticut 06607 • European Technical Center: 8005 Zurich, Switzerland
Manufacturers of Jig Borers, Jig Grinders, Universal Measuring Machines, Rotary Tables,
Tool Room Products and High Precision Measuring Instruments and Gages. later
American Machinist, March 6. 1972 Circle 19 on reader service card 19

Two pages of facts about Moore jig-grinds. You don’t have to be an engineer to
perceive that this equipment represents a heavy investment, but the ad has to con¬
vince engineers and production men that the investment is worth while for their
company.
 668 Morrill Studies—it reduces the cost per sales dollar by supplementing
Other the salesman.
Worlds of
Advertising American Metal Market Study—product advertising increases the
share of potential buyers who consider the brand.
Production Study—industrial advertising reaches purchasers that the
salesman can’t find or does not have the time to cover.4

Industrial Publications

There are many industrial publications designed to reach the men who make
the purchasing decisions for the production of goods by business enterprises.
These publications may be classified as vertical and horizontal.
Vertical industrial papers are those discussing problems of a single
industry. Frosted Food Field, for example, "is edited for management per¬
sonnel in the frosted food industry . . . contains articles on frozen food
distribution, processing, purchasing, merchandising, transportation, ware¬
housing.’’ Mechanical Contractor is "designed to meet the needs of the large
heating, piping, plumbing, and air-conditioning contractor.’’ Each industry
will have many publications devoted to its production problems. For example,
in the construction-engineering classification in the Standard Rate & Data
Service, 86 publications are listed.
Horizontal publications are edited for men who have similar func¬
tions in their companies, regardless of their specific industry, as Industrial
Maintenance and Plant Operation, published for those responsible for "main¬
tenance and operation of industrial plants of over 50 employes,” or Purchas¬
ing, "a news magazine for purchasing executives with titles such as purchasing
agent, director of procurement, vice-president in charge of purchasing.”
There are also many state publications. About 200 of the largest pub¬
lications have geographic and demographic editions. About 15 publications
have international editions.

Auditing reports. Most audited business publications are distributed

on a controlled-circulation basis.5 They belong to Business Publications Audit
of Circulation, Inc. (BPA). Others belong to the Audit Bureau of Circula¬
tions (ABC).

Professional Publications

The Standard Rate & Data Service has a special edition for Business Publica¬
tions. These publications include journals addressed to the professions—

4 Industrial Marketing, June 1971.

5 See p. 658.
physicians, surgeons, dentists, architects, and other professionals—and their 669
Business
editorial range varies from reporting new technical developments to discuss¬ Advertising
ing how to run offices more efficiently and profitably. Professional men are a
most important influence in recommending or specifying the products their
patients or clients will need. Much advertising, therefore, is addressed to
them. The writing of copy for such publications requires training and educa¬
tion in the field addressed. It is a specialized arm of the advertising agency
business.

Standard Industrial Classification Index (SIC)

One of the great marketing facilities enjoyed in industrial marketing

and selling is the classification of all business establishments by the Bureau
of the Budget. All enterprises fall into one or more of the 94 identifiable es¬
tablishments. Each has a number and is always uniform. Then, by a series of
additional digits, more detailed information about the plant is conveyed.
This means that industrial publications can provide an analysis of the
circulation going to each classification. The advertiser can then pick the pub¬
lication reaching the greatest number of the specific prospects he is,seeking.
This is also helpful in direct mail, in selecting prospects, as we shall again
discuss.

Industrial Advertising Copy

Industrial advertising speaks to engineers and to other men who are

technically trained in their calling. They read their trade or professional
journals because of a constant challenge to keep informed of the latest de¬
velopments affecting their field; they have to fight professional obsolescence.
They read advertisements with the same critical curiosity with which they read
the editorial matter. They are looking for news of products and experiences
relevant to their problems, expressed in specific, factual form. They are in¬
terested in problems and their solution; they are most interested in case reports
showing how some problem was successfully met. They seek confirmation or
other proof of all claims made. They will read long copy, and welcome any
charts or photographs that help explain matters.
Most advertisements make a strong bid to the reader to write for
further information. Industrial advertising adheres closely to the copy struc¬
ture discussed earlier—promise of benefit, amplification, proof, action.

Use of case histories. The case history is one of the most satisfying
approaches in presenting a story to industrial advertisers. It can be used in
many ways as part of an integrated promotion. These are outlined by Hofsoos
as follows:
 670 1. As a publicity release
Other
Worlds of 2. As an advertisement
Advertising
3. Asa data or fact sheet for salesmen
4. As direct mail
5. As sales and technical literature
6. As displays and exhibits.6

Industrial Direct Mail

Of 615 industrial advertisers responding to a survey on direct mail conducted

by the Association of Industrial Advertisers, 68 percent spent 10 percent of
their budget on direct mail; 25 percent of the respondents spent 25 percent of
their budget on direct mail; 5 percent spent 50 percent of their budget on
direct mail; and 2 percent spent 75 percent of their budget for direct mail.
The chief purposes are to announce new products, inform of product
features, obtain sales leads, and announce changes in price.7
The great problem in industrial direct mail is to determine who will
be involved in the buying decisions of a forthcoming project. Among the steps
toward arriving at a final buying decision, in which different men might join,
are these:

—Determining the need

—Establishing specifications
—Preparing a list of potential buyers
—Contracting suppliers
—Evaluating suppliers
—Determining suppliers
—Placing the order
—Postpurchase evaluation 8

One cannot always tell by their titles who are the men to contact by mail at
any of these stages.
In discussing lists, National Business Lists advises:

Possibly the most crucial step in mapping out a direct-mail support

program is to insure quality by the careful selection of the right

6 Emil Hofsoos, Industrial Advertising (Houston, Tex.: Gulf Publishing Company,

1970), p. 73.
7 Direct Mail Survey of AIA Members, Association of Industrial Advertisers, 1968,
pp. 1-2.
8 Ibid.
 market segments. Out of the lists of four million and more names, 671
Business
you can carefully pick your way to the most suitable targets for your
Werbung
direct mail by means of several criteria.
Start with the government’s Standard Industrial Classifications that
neatly fit all businesses into nine major categories, each divided into
hundreds of numerically designated groups, much like the Dewey
Decimal System that makes it possible to find the book you want in
any well-ordered library. Manufacturing is one of the major cate¬
gories, refined into twenty groups. One of the groups is Electrical
Machinery and Equipment (#36). In turn, this group is split into
scores of specific classifications, ranging from Welding Apparatus

Manufacturing Firms Continued

MIN min
SIC OUANT. PRICE QUANT SIC OUANT. PRICE QUANT

□ 3211 84 Flat glass S15/L ALL 03315 152 Steel wire drawing, nails & spikes 315/L ALL
03316 117 Celd rolled sheet, strip, £> bars 315/L ALL
□ 3221 119 Glass containers S15/L ALL □ 3317 162 Steel pipe & tubes 315/L ALL
□ 3229 306 Pressed & blown glassware, n.e.c. 520/L ALL
□ 3321 868 Gray iron foundries S30/L ALL
□ 3231 685 Glass products from purchased glass S28/L ALL □ 3322 113 Malleable iron foundries 315/L ALL

□ 3241 247 Cement, hydraulic S20/L ALL □ 3323 218 Steel foundries 320/L ALL

□ 3251 484 Brick & structural clay tile 320/L ALL 03331 37 Primary smelting & refining of copper 315/L ALL
03253 130 Ceramic wall & floor tile 315/L ALL 03332 23 Primary smelting s. refining of lead 315/L ALL

03255 183 Clay refractories S15/L ALL 03333 35 Primary smelting & refining of zinc 315/L ALL
03259 143 Structural clay products, n.e.c. S15/L ALL □ 3334 59 Primary production of aluminum S15/L ALL

03261 54 Vitreous china plumbing fixtures, china & □ 3339 78 Primary smelting & refining of
earthenware fittings & bathrm accessories S15/L ALL nonferrous metals, n.e.c. 315/L ALL
□ 3262 35 vitreous china table & kitchen ware S15/L ALL
□ 3263 20 Fine earthenware kitchen articles S15/L ALL □ 3341 245 Secondary nonferrous refining 320/L ALL
□ 3264 70 Porcelain electrical supplies S15/L ALL
□ 3269 455 Pottery products, n.e.c. 320/L ALL □ 3351 141 Rolling, drawing s> extruding copper 315/L ALL
03352 238 Rolling, drawing & extruding aluminum 320/L ALL
03271 1,896 Concrete brick & block manufacturers S30/M 1,000 □ 3356 195 Nonferrous rolling, except 3351 & 3352 315/L ALL
1,844 Rated si0,ooo & over* add 5/M □ 3357 256 Drawing & insulating nonferrous wire 320/L ALL
1,745 Rated $20,000 & over* add 7/M
987 Rated S 35,000 & over add 18/M □ 3361 907 Aluminum castings S30/L ALL
03362 573 Copper & copper alloy castings 328/L ALL
□ 3272 2,459 Concrete products, except 3271 S30/M 1,000 □ 3369 387 Nonferrous castings, n.e.c. 320/L ALL
□ 3273 2,979 Ready mixed concrete S28/M 1,250
□ 3274 119 Lime S15/L ALL □ 3391 372 Iron & steel forginas 320/L ALL
□ 3275 117 Gypsum products S15/L ALL □ 3392 34 Nonferrous forgings 315/L ALL
□ 3399 636 Primary metal Industries, n.e.c. 328/L ALL
0328 1 847 Cut stone & stone products S30/L ALL

□ 3291 311 Abrasive products 320/L ALL □ 3400 25,168 Fabricated metal products, except
□ 3292 157 Asbestos products 315/L ALL SICS 1900, 3500, 3600 and 3700
(SIC 3411 through 3499 combined) 323/M 3,000
03293 266 Pipe packing & insulating materials 320/L ALL 23,963 Rated S10,000 & over* add 5/M
□ 3295 500 Minerals & earths, ground & treated S28/L ALL 22,436 Rated 320,000 & over* add 7/M
20,785 Rated S35.000 & over* add 10/M
□ 3296 124 Mineral wool 315/L ALL 8,058 Rated S75,000 6> over add 23/M
□ 3297 70 Nonclay refractories 315/L ALL 5,321 Rated 3200,000 & over add 28/M
□ 3299 296 Nenmetallic mineral products, n.e.c. 320/L ALL

□ 3411 252 Metal cans 320/L ALL

O3300 6,352 Primary metal industries
(SIC 3312 through 3399 combined) 326/M 1,500 □ 3421 131 Cutlery S15/L ALL
6,003 Rated 320,000 & over* add 7/M □ 3423 640 Hand & edge tools, except 3425,3541 5. 3542 328/L ALL
5,782 Rated 335,000 & over* add 10/M □ 3425 122 Hand saws & saw blades 315/L ALL
2,727 Rated 375,000 i over add 23/M □ 3429 993 Hardware, n.e.c. 330/L ALL
2,206 Rated 3200,000 & over add 28/M
□ 3431 165 Enameled iron & metal sanitary ware S15/L ALL
03432 249 Plumbing fixture fittings and trim
03312 452 Blast furnaces (Including coke ovens). (brass aooda) S20/L ALL
steel works & rolling mills 320/L all
□ 3313 45 Electrometallurgical products 315/L ALL 03433 518 Heating eauipment, except electric S28/L ALL

□ List compiled from latest credit reference directories and verified by checking most recent alphabetical phone books. Names not in phone book dropped from list.
• Includes unrated firms because well over 50% would be in this category if rated. Aod $>8/M to exclude unrated.

Counts by state and larger cities are available on request for all lists with more than 2,000 names, but not for smaller lists. 23

Courtesy: National Business Lists, Inc.

Industrial Mailing Lists

A page from a catalog of a firm specializing in gathering and selling mailing lists
to industrial advertisers. Note the variety.
 672 (#3623) to Phonograph Records (#3652). Would your products
Other have the same degree of application in both of those—or should you
Worlds of
Advertising be choosing with explicit care? Why scatter your shot when you can
choose the quality of prospect that means success for your sales effort?
The SIC, short for Standard Industrial Classification, is an excellent
weapon for that purpose.
There are other criteria that may be equally useful to you. You may
want to refine your overall market by isolating businesses of different
financial stature . . . or by the yardstick of number of employes.9

Catalogs and Directories

Many industrial producers make parts and equipment that are sold through
hardware supply, electrical supply, and other distributive channels. These es¬
tablishments could not possibly keep on hand an inventory of all the many
items for which they get occasional calls. Rather, they maintain a series of
loose-leaf binders, for which manufacturers supply the pages in standardized
sizes. The issuance of these pages is a large part of the advertising budget.
Every industry will have its directory and buyers’ guide, with descrip¬
tions of its lines, and lists of the various companies selling its products. These
directories are a responsible medium for any firm that wishes to have its name
before their audiences. Thomas’ Register of American Manufacturers, a dis¬
tinguished comprehensive directory and catalog, even has its offerings on
microfilm, in a form that can stand on a purchasing agent’s desk.

Business Shows; Publicity

One of the dependable sources of new leads for salesmen is the annual busi¬
ness show given by each of the many industries. All the leading sellers have
booths presenting their products. All who are interested attend such shows.
Another is the reaction to significant publicity; what makes such news sig¬
nificant and worth publicity is what it reports as a significant contribution
of technology. It begins in the R&D department. But such developments do
not come out every month; therefore the resourceful-minded publicity man
seeks to generate some news—perhaps the issuance of a new helpful manual,
or an informative film. The art lies in having something to say, not just in
sending out "news” releases that no editor would accept as news from his
reporters.

9 The Q Concept, National Business Lists, Chicago, 1971, pp. 7-8.

Corporate Industrial Advertising—Magazines 673
Business
Werbung
The top executives of a company never get away from major problems. They
read many publications outside those of their industry, but the problems of
their own business are always in their minds. As a result, much advertising by
industry appears in publications such as Time, Newsweek, US. News &
World Report, Forbes, Fortune, and the Wall Street Journal. These advertise¬
ments usually tell of how a company licked a major problem that may apply
to other companies, or present some new corporate development or facility
that may benefit many companies.

Corporate Industrial Advertising—Television

The following is an excerpt from a case report on the use of television to sell
expensive computers to top corporate management:

The problem: Can television generate sales for a high-priced item

aimed at a select group of businessmen?
NCR, a 100-year-old company headquartered in Dayton, was a
Johnny-come-lately in the computer field. In 1968, NCR introduced
its century line of computers at a cost of $150 million. This brought
NCR into direct competition with IBM and four other major com¬
puter makers.
Could NCR convince customers that its computers would outperform
already accepted models? Board Chairman Robert Oelman thought so
and he set a sales goal of 5,000 computers—more than twice the num¬
ber NCR had sold of its older models in the previous five years.

KEY OPPORTUNITY FOR

TOP CALIBER
INDUSTRIAL AD MANAGER
Can you do these things well? (1) Recognize creative ideas of
real value to a marketing problem: (2) help translate such
ideas into a working plan: (3) implement that plan to get full
effectiveness from the idea? (4) display initiative and decision¬
making ability in getting the job done? If your work to date
demonstrates that you meet these essential criteria, great! Your .
experience with electrical capital-goods marketing will be an (
extra asset. So will evidence of your ability to work effectively J
with agency and staff colleagues. Salary and benefits match or l
better the best in industrial advertising management area. Our I
Advertisement, Advertising Age
 674 After a thorough investigation, Ira Hays received a go-ahead to use
Other
television as an important element in his "marketing muscle" cam¬
Worlds of
Advertising paign. NCR bought network announcements in a golf match telecast
from its home course in Dayton. Since then, CBS and NBC football,
news, and news documentaries have been part of the television mix for
NCR.
Last year, Ira Hayes outlined NCR’s advertising goals as follows:
"One: to create a new identity for NCR as an important producer of
computers and related products. Two, to effect continual increase in
awareness and knowledge of individual products as they apply to
specific industries. And three, we want decision makers to think of
us as the computer. . . .”
At the June ’70 annual meeting, a stockholder asked Chairman Oelman
if the century marketing strategy had been successful. His answer:
"We already have some 2,500 orders, over 1,000 installations. And
our share of market is steadily growing." And Business Week, June
5th, 1971, reports NCR computer sales "up sharply." 10

Corporate Industrial Advertising—Radio

Radio is used by industrial advertisers, especially at drive time, to reach their

prospects. The Association of Industrial Advertisers reports:

One advertiser concentrating with radio is Standard Oil of New

Jersey. "We like to isolate markets," John Irwin, senior advisor for
advertising and films, told us. "We use 11 stations in New York and
6 in Washington. We try to speak to a select audience by time period
and station. We want to reach the decision makers, financial com¬
munity, and government officials."
Another longtime radio user is the Timken Roller Bearing Company
of Canton, Ohio.
Jim Oaks, Timken’s ad manager, told us: "We use radio to reach
select audiences in cities where the audience has an involvement with
automobiles. We heavy-up in Detroit, where we run 18 spots a week
aimed at automotive management, engineers, and purchasing agents.
In addition, we run 12 spots a week in Pittsburgh.
"To reach the industrial audience, we run 15 spots a week in Chicago,
Cleveland, Milwaukee, and Moline. Our main programming is disc
jockey music in morning and evening drive time. We’ve gotten a lot
of playback from our radio spots over the years.11

10 From presentation of Mr. Norman E. Cash, president of the Television Bureau

of Advertising, before the Association of Industrial Advertisers, Palmer House, Chicago,
June 23, 1971.
11 Media Decisions, October 1971.
The Business End of Business Advertising 673
Business
Werbung
Industrial advertising is usually handled through agencies that specialize in
the field, or who have men with training or experience in the sciences, en¬
gineering, chemistry, or in writing about these subjects. Such agencies are
usually equipped to handle all phases of an industrial advertiser’s promotion
needs, including advertising, publicity, brochures, and manuals. Medical ad¬
vertising to physicians has its specialized agencies and writers; sometimes such
agencies are separate divisions of consumer agencies.
Budgets for industrial advertising are much smaller, as a rule, than for
consumer advertising. In a questionnaire to industrial advertisers by The
Gallagher Report, 163 responses were received. Their expenditures for 1971
averaged $452,700.12 In consumer advertising, it is often possible to feel the
effects of advertising on sales quickly. With the great time lag in industrial
advertising between first expression of interest and final sale, with the burden
of consummating that sale falling on the sales department, the direct con¬
tribution of advertising cannot easily be isolated. As Wittner pointed out,
men who have come up through marketing rarely occupy the top spots in
companies whose products are sold to business and industry.13
Which means that the full potential of advertising industrial products
is yet to be experienced.

Review Questions

1. What is meant by industrial adver¬ 6. For the industrial advertiser, what is

tising ? the role of (a) catalogs and direc¬
tories, (b) trade shows, and (c) pub¬
2. Compare the major characteristics of
licity ?
industrial buying decisions and con¬
sumer buying decisions. 7. Discuss the reasons why an industrial
advertiser would undertake an adver¬
3. Distinguish between vertical and
tising campaign in non-industrial
horizontal publications.
magazines. In television. In radio.
4. What is SIC? Describe its usefulness
to industrial advertisers. 8. How does the message of trade paper
advertising differ from that of con¬
5. How does the nature of the industrial sumer advertising? Industrial adver¬
buying decision affect the content of tising?
industrial ads? What is the chief sub¬
stance of such ads ? 9. What is a B.P.A. audit?

12 The Gallagher Report, Vol. XIX, No. 51852, 1971.

13 Media Decisions, July, 1971, p. 60.
 676 Reading Suggestions
Other
Worlds of
Advertising Business Week, "Industrial Ads: The Korn, Don, "Sales Managers Call the
View from the Top,” May 30, 1970, Shots To Get More Sell,” Sales Man¬
p. 92ff. agement, November 29, 1971, pp. 19-
Carman, James M., "Evaluation of Trade 24.
Show Exhibitions,” California Man¬ Messner, Fred R., Industrial Advertis¬
agement Review, Winter 1968, pp. ing. New York: McGraw-Hill Book
35-44. Company, Inc., 1963.
Fox, Howard W., "A Framework of Morrill, John E., "Industrial Advertis¬
Industrial Marketing,” Baylor Busi¬ ing Pays Off,” Harvard Business Re¬
ness Studies (Waco, Texas: Baylor view, March-April 1970, pp. 4—14.
University), November-December Sales Management, "New Evidence: In¬
1971. dustrial Ads Get Results,” May 15,
Hofsoos, Emil, What Management 1970, pp. 21-22.
Should Know About Industrial Ad¬ Schiller, Robert D., ed., Market and
vertising. Houston, Texas: Gulf Pub¬ Media Evaluation. New York: The
lishing Company, 1970. Macmillan Company, 1969.
 30
Legal and Other
Controls of Advertising
■Jm]

Warning: The Surgeon General Has Determined That

Cigarette Smoking Is Dangerous toYour Health.

When Winston Churchill took his entrance examinations to get into

Sandhurst in 1880, he was given a choice of three essay questions: Riding vs.
Roiving; Advertisements, Their Use and Abuse; and The American Civil War.
(He chose The American Civil War.)1 That the use and abuse of advertising
was up for discussion nearly a century ago reveals that today’s criticisms of
advertising are not new.
The fact is that advertising is a technique; techniques have no morality
of their own, but reflect the mores of the times and the standards of their
users. When a man publishes his claims in an advertisement, he has to think
twice about what he says, because it becomes a matter of public record for
which he can be held accountable.
In most large companies, advertisements have to go through layers
of approval for accuracy before they can be released. The only reason that
advertising continues over the years to be a viable means of communication
is that most people have had satisfactory experiences with most advertised
products they have bought. There have always been some advertisers whose
products did not live up to their claims; in recent years, even some prestigious
firms have been cited by the government for making questionable claims. To
protect the public from false and misleading advertising, numerous laws have
been passed. Chief among these is the Federal Trade Commission Act, which
we discuss first. We will then touch upon some other federal and state laws
affecting advertising, as well as other steps to protect the consumer from mis¬
representation in advertising.

The Federal Trade Commission Act

When the Federal Trade Commission Act was passed in 1914, Congress held
that "unfair methods of competition are hereby declared unlawful.” (For an

1 Randolph S. Churchill, Winston S. Churchill (Boston: Houghton Mifflin Com¬

pany, 1966), Vol. I, p. 129.

677
 678 example of what was going on in those days, which brought on this act, the
Other
reader is referred to the Standard Oil Company activities previously cited.)2
Worlds of
Advertising The law was designed to protect one businessman from another; the consumer
was not in the picture.
In time, the Federal Trade Commission (FTC), the enforcing arm of
the government under this act, came to consider misleading advertising as an
unfair method of doing business, and in this way, the FTC became involved
in protecting the consumer from misleading advertising. In 1938, the FTC’s
power was officially expanded by the Wheeler-Lea Amendments to the original
act, to cover "unfair or deceptive acts or practices.’’ This law also gave the
FTC specific authority over false advertisements in the fields of food, drugs,
therapeutic devices, and cosmetics. Today, the FTC has a wide sweep of power
over advertising of products sold across state lines.

Some Basic FTC Ground Rules

Over the years, some basic ground rules for application of the FTC
law to advertising have emerged, based largely on the rulings of the Federal
Trade Commission and on court decisions. Important among these are the
following:

Total impression. The courts have held that the overall impression
that an advertisement gives is the key as to whether it is false or misleading.
Thus, in one case, although the term "relief" was used in an advertisement,
the net impression from the entire context was that the product promised a
"cure" for the ailment. Similarly, words like "stops," "ends," and "defeats"
may improperly imply permanent rather than temporary relief. If an adver¬
tisement has even a "tendency to deceive,” the FTC may find it illegal.

Clarity. The statement must be so clear that even a person of low

intelligence would not be confused by it. The tendency of the law is to pro¬
tect the credulous and the gullible. If an advertisement can have two meanings,
it is illegal if one of them is false or misleading.

Fact vs. puffery. The courts have held that an advertiser’s opinion of
his product is tolerated as the legitimate expression of a biased opinion, and
not a material statement of fact. However, a statement that might be viewed
by a sophisticated person as trade puffery can be misleading to a person of
lower intelligence. Much controversy over misleading advertising hovers
around the question, When is a statement trade puffery and when is it a false
claim? All factual claims must be supportable. To say "This is a 17 jewel
watch" is an objective statement of fact which can be verified. If the watch

2 See p. 15.
does not contain 17 jewels, the statement is false and misleading. To say "This 679
Legal
is the most beautiful watch you can buy at this price” is a subjective opinion, and Other
which could be regarded as trade puffery. Controls of
Advertising

The question of taste. The courts have held, "If the advertisement
is not false, defendants have a constitutional right to use it even though its
content and blatancy may annoy both the Federal Trade Commission and the
general public. The issue is falsity. . . 3

Demonstrations. Demonstrations of product or product performance

on television must not mislead viewers. The FTC requires literal accuracy in
nutritional ads, both audio and video.
The Campbell Soup Company discovered this when they were found
guilty of deception in a TV commercial in which they put marbles in the bot¬
tom of a bowl of vegetable soup to give the impression of an amplitude of
vegetables.
Exaggerations in the impression conveyed may also be found mislead¬
ing. Mars, Inc., makers of Milky Way candy bar, had a TV spot showing a glass
of milk magically changing into a Milky Way bar. The commercial was held
misleading because it gave the impression that a whole glass of milk went into
a Milky Way bar.

Guarantees. Any guarantee used in advertising must clearly and

conspicuously disclose the nature and the extent of the guarantee, the manner
in which the guarantor will perform, and the identity of the guarantor.

"Free.” This is a popular word in advertising, along with related

words, such as "Buy one—Get one free,” "2 for 1 sale,” "Gift,” "Bonus,”
and "Without charge.” If there are any terms of conditions for getting some¬
thing free, they must be stated clearly and conspicuously with the word
"free.” If a purchaser must buy something to get something else free, what
he buys must be at the lowest price at which it has been offered (same quality,
same size) in 30 days. A "free” offer for a single size may not be advertised
for six months in a market in any twelve-month period.

Lotteries. Lotteries are schemes for the distribution of prizes by

chance. If a person has to pay for entering the lottery, it is held illegal by the
U.S. Postal Service, and banned from the mails. If advertised in interstate
commerce, the FTC also holds it illegal, and will enter to stop it. The giving
of prizes in the many "sweepstakes” advertised is allowable because they do
not require a person to pay money to enter.

3 Judge Dawson, in FTC v. Sterling Drug, Inc., 215 F. Supp. 327, 332 (S. D. N. Y.
1963) aff’d. 317 F. 2d 669 (2d Cir. 1963).
 680 Federal Trade Commission guidelines. The FTC, after consulting
Other
Worlds of
with members of over 175 individual industries, has compiled and published
Advertising trade-practice rules, calling attention to practices that are illegal. These are
offered as a guideline for legal operation.

Obviously the foregoing references to the laws relating to advertising

are an oversimplification, designed as a guide in creating advertising, and call¬
ing attention to the danger zones. All advertisements containing any state¬
ments that would come under FTC scrutiny should be submitted to an attorney
for approval before running. Honest intentions provide no shelter for an ad¬
vertisement that is found misleading.

New Directions of the FTC

In the early 1970’s, new directions were evident in the thrust of FTC
activities. Among the practices introduced, and attitudes that were manifest,
were the following:

Corrective advertising. In the past, when an advertiser had been

found guilty of running advertising that the commission found false and mis¬
leading, action would result in his being obliged to sign a decree consenting
to discontinue such advertising (the consent decree). Meanwhile, damage to
the public had been done, and during the long time that the hearings re¬
quired, the advertiser would continue to run the ad. Under the FTC’s new
Formula for Effective Relief, and in order to counteract the residual effects
of the deceptive advertising, the FTC may now require the advertiser to run
advertising "to dissipate the effects of that deception.’’ This practice of cor¬
rective advertising promises to act as a meaningful deterrent to any advertiser.

Substantiation of claims. The FTC has increased its demands that

advertisers make available documentation of claims relating to the safety, per¬
formance, and efficacy of their products.

Changing views on advertising content. Another view of the pres¬

ent attitude of the Federal Trade Commission was expressed by Gerald J.
Thain, assistant director for food and drug advertising, Bureau of Consumer
Protection, Federal Trade Commission. Speaking of television, he said:

New advertising concepts have been developed during the last ten
to twenty years which exploit television’s unique capabilities and the
consumer’s vulnerability to them. Wants and desires that do not pre¬
exist may be invented, cultivated, and developed. . . . Mood adver¬
tising may associate a product with strongly held social values such
 as affluence or sophistication, or it may imply benefits leading toward 681
Legal
the satisfaction of basic emotional needs, such as attractiveness to the and Other
opposite sex, freedom from fear, and acceptance. In neither situation Controls of
is there any rational connection between the product and the inference Advertising

being made, and in neither case does the advertisement provide

sufficient information on the product’s real attributes, such as quality
and price—information conducive to a rational purchase.
The consumer, unwary of the new advertising techniques, is placed in
a vulnerable and easily exploited position.4

Some comments regarding the statement above:

1. Television did not loom up overnight to take by surprise a vul¬

nerable consumer. A whole generation had grown up with TV, conditioned to
select stations and programs with the press of a button, and mentally to tune
out commercials that did not interest them, and indeed often annoyed them.
They had been reared in making instant decisions as to what they liked and
what they didn’t like—more so than the generation of pretelevision days was
obliged to do. And they are more sophisticated and worldly-wise and critical
than the pretelevision consumers, hardly more "vulnerable.”

2. Why should it be wrong to enlarge a man’s horizons by showing

things he might not have known about, provided only that they are not harm¬
ful to health? Besides, dreams and aspirations are part of man’s natural right.
What’s wrong with selling products that "satisfy basic emotional needs”?

3. The assumption of this article is that nothing should be bought

without a "rational” fact-and-figure reason. Visit the homes of those who
may express such an opinion, and you will see that each man expresses his
personality in a different way—the decoration, the pictures, the books and
tapes, the neatness or informality of his home, his garden—each affording him
psychic satisfaction, which he denies to others as a valid basis for buying
something.

4. The alarm that the consumer is "unwary of the new advertising

techniques of TV” (television has been with us for over 20 years) is a re¬
gurgitation of the myth that advertising has some hypnotic power over
people to make them buy things while in a trance, and that the discoverer of
this secret is now going to protect people from advertising that does not
meet his standards. Even television does not have the power to make a per¬
son buy something he does not want to buy, if for no other reason than that
there is too much counterpressure from other advertisers.

4 Address in a program of the Division of Food, Drug and Cosmetic Law in New
York, on July 7, 1971, as published in The Business Lawyer, April 1972, p. 902.
 682 The Robinson-Patman Act
Other
Worlds of
Advertising
Never before had the little storekeeper been at such a disadvantage in relation
to the big store as just before 1936. That was the bottom of the big depression;
manufacturers were hungry for business, prepared to make deep discounts and
advertising allowances in exchange for a good-sized order, and these prac¬
tices could drive small merchants out of business. To meet such unfair com¬
petition, the Robinson-Patman Act was passed. That law is an ever-present
consideration in advertising plans today.
In brief, this law requires a seller to treat all competitive customers
of a product on proportionately equal terms in regard to discounts and adver¬
tising allowances. This is not a law for or against advertising and promotional
allowances; it simply says that if they are granted to one customer, they must
be offered to competing customers on the same proportionate terms in relation
to sales. The Federal Trade Commission, which is in charge of the enforce¬
ment of this act, offers the following examples of how the law is interpreted:

Example 1: A seller may properly offer to pay a specified part (say

50%) of the cost of local advertising up to an amount equal to a set
percentage (such as 5%) of the dollar volume of purchases during
a specified time.
Example 2: A seller may properly place in reserve for each customer
a specified amount of money for each unit purchased, and use it to
reimburse those customers for the actual cost of their advertising of
the seller’s product.
Example 3: A seller should not select one or a few customers to re¬
ceive special allowances (e.g., 5% of purchases) to promote his
product, while making allowances available on some lesser basis
(e.g., 2% of purchases) to customers who compete with them.
Example 4: A seller’s plan should not provide an allowance on a basis
that has rates graduated with the amount of goods purchased, as, for
instance, 1 percent of the first $1,000 purchases per month, 2 percent
of the second $1,000 per month, and 3 percent of all over that.
Example 3: A seller should not identify or feature one or a few cus¬
tomers in his own advertising without making the same service avail¬
able on proportionally equal terms to customers competing with the
identified customer or customers.

The manufacturer must also have available alternative advertising

material for use by stores with varying advertising-allowance dollars. Usually,
newspaper mats are available for those whose allowances permit the use of
newspaper advertising. For advertisers whose dollar allowance is not big
enough to run meaningful newspaper space, the manufacturer may offer the
dollar equivalent in direct mail bearing the store imprint, or some other pro¬
motional offer. The enforcement of the Robinson-Patman Act has been difficult.
The Federal Food, Drug and Cosmetic Act 683
Legal
and Other
Closely tied to the Federal Trade Commission Act is the Federal Food, Drug Controls of
Werbung
and Cosmetic Act, passed in 1938, giving the Food and Drug Administration
broad power over the labeling and branding—as contrasted with the adver¬
tising—of foods, drugs, therapeutic devices, and cosmetics. The term labeling
has been held to include any advertising of the product appearing in the same
store in which the product is sold; it does not have to be physically attached
to the package. In the case of one drug preparation, the package itself was
properly labeled, but the stores also sold a soft-cover book on health, written
by the maker of the product, in which this product was mentioned, and for
which unprovable claims, were made. He was in trouble with the Food and
Drug Administration for false labeling and for false advertising.
It is under this law that food and drug manufacturers must put their
ingredients on the labels. The latest program, as this is being written, is to re¬
quire the disclosure of the percentage of seafood in seafood cocktails. The
author is curious as to what kind of objections there can be to that.

Other Federal Controls of Advertising

The Federal Trade Commission also exercises control over the advertising
and labeling of products under laws affecting specific industries, including:

Wool Products Labeling Act of 1939

Fur Products Labeling Act (enacted in 1951)
Flammable Fabrics Act (enacted in 1953)
Textile Fiber Products Identification Act (enacted in 1958)

The Alcohol Tax Unit of the US. Treasury Department. The liquor
industry has a unique pattern of labeling and advertising under both federal
and state laws. The federal laws are under the jurisdiction of the Treasury
Department, for an interesting historic reason: The first American excise tax
was the one levied under Alexander Hamilton, secretary of the Treasury, on
alcoholic beverages. That department, through its Alcohol Tax Unit, is inter¬
ested to this day in the labeling, in standards of size of bottles for tax purposes,
and in the advertising of these beverages. The label must disclose the type of
liquor; its proof; in the case of blends, the proportion of aged whiskies and
neutral spirits; and the name and address of the distiller. It may not make any
therapeutic claims and must comply with other restrictions.
Each state also has its own liquor-advertising laws for products sold
within its domain. In some states you cannot show a drinking scene; in others
you can show a man holding a glass, but not to his lips; in another you can
picture only a bottle. In few industries does an advertising man constantly
need a lawyer more than in liquor advertising.
 684 The Securities and Exchange Commission (SEC). This is the agency
Other
Worlds of
of the government that has control over all advertising of public offerings of
Advertising stocks or bonds. Its whole effort is to insist on the full disclosure of the truth¬
ful facts relevant to the company and the stock to be sold, so that the pros¬
pective investor can form his opinion. Its insistence on the facts that must be
published—including a statement of negative elements affecting the invest¬
ment—is very firm and thorough. The SEC never recommends or refuses to
recommend a security; its entire concern is with the disclosure of full infor¬
mation. It is a criminal offense to advertise a security under SEC jurisdiction
without having it registered with the SEC, unless there is an appropriate ex¬
emption (such as relatively small offerings, which at this writing means of
less than $500,000).

The U.S. Postal Service. The Postal Service has the authority to stop
the delivery of mail to all firms guilty of using the mails to defraud. It does
so by returning to sender all such mail, rubber-stamped:

Fraudulent—Return to sender by order of Postmaster General

That is enough to put any operation out of business!

State Laws Relating to Advertising

While the pattern of the federal statutory scheme is generally one of broad
language that is not essentially confined to specific industries, most states
have narrower laws directed at one or more designated practices or industries.
The result has been a hodgepodge of state mandates on such subjects as
liquor, bedding, stockbrokers, banks, loan and credit companies, employment
agents, business-opportunity brokers, and real estate brokers.
The list also includes socially disapproved services and commodities
—dealing with sex and obscenity, lotteries and gambling, fortunetelling, and
crime publications—and the use of state and national flags for advertising.
It also covers professional and occupational advertising by lawyers, physicians,
real estate salesmen, and many others.
The first basic state statute in the regulation of advertising, which
still represents a landmark in advertising history, is the Printers’ Ink Model
Statute drawn up in 1911, attempting to punish "untrue, deceptive, or mis¬
leading” advertising. Printers’ Ink magazine, the pioneer trade paper of ad¬
vertising, has died, but its model statute, in its original or modified form,
exists in 44 states.
Self-regulation by Media 685
Legal
and Other
One of the oldest and most vigorous forms of control of advertising content Controls of
Advertising
is that of the media.
National magazines present the most striking example of the control
over the advertising they accept. Publications like Good Housekeeping and
Reader’s Digest have rejected great numbers of unacceptable advertisements.
But the New Yorker has reported objectionable advertising at a minimal level,
for it deals mostly with national advertisers. The smaller magazines directed
toward special groups are still often involved in enforcing advertising control.
Newspapers also have their codes of acceptable advertising. Most of
them exercise control even over the comparative price claims made in the re¬
tail advertising they publish. A store may be asked to change a headline such
as, "These are the lowest-price sheets offered," to "The lowest-price sheets
we have ever offered.” "The greatest shoe sale ever” will be changed to "Our
greatest shoe sale ever.”
The National Association of Broadcasters, to which many television
stations belong, has set up codes for TV and radio. Seventy-six percent of the
country’s television stations, as well as all three networks, are code subscribers
and follow closely the station and network code. Taste, however, is hard to
define, even in a code. Radio, with 5,000 stations, presents a different prob¬
lem. Only about 2,000 are code subscribers. It has been difficult to unite the
radio broadcasters behind a code that, among other things, limits the amount
of commercial time per broadcast hour.
The code stations do not accept liquor advertising. Their chief prob¬
lem has been children’s advertising, which has been severely criticized for
taking advantage of children’s credibility every Saturday morning. The NAB
code has established clear guidelines for its members, to meet public criticism.
All network programs, whether for children or not, have to be submitted to
the network in advance for approval.

Self-regulation by Advertisers

The problem of advertising on children’s programs provides a good example

of how the self-regulation of advertisers is even more rigid than the media
code of the industry. The Association of National Advertisers, whose members
do over 75 percent of national television advertising, has established children’s-
television guidelines that include specifications such as these, offered merely
to show the nature of the restrictions:
 686 Any form of presentation that capitalizes on a child’s difficulty in dis¬
Other
tinguishing between the real and the fanciful should be positively
Worlds of
Advertising guarded against.
Particular control should be exercised to be sure that:
a. Copy, sound, and visual presentation—as well as the commercial
in its totality—do not mislead the audience to which it is di¬
rected on such performance characteristics as speed, size, color,
durability, nutrition, noise, etc.; or on perceived benefits such
as the acquisition of strength, popularity, growth, proficiency, in¬
telligence, and the like.
b. The advertisement clearly establishes what is included in the
original purchase price of the advertised product, employing
where necessary positive disclosure on what items are to be
purchased separately. All advertising for products sold un¬
assembled should indicate that assembly is required.
c. A clearly depicted presentation of the advertised product is
shown during the advertisement. When appropriate in assisting
consumers to identify the product, the package may be depicted,
provided that it does not mislead as to product characteristics or
content.
d. Advertising demonstrations showing the use of a product or
premium can be readily duplicated by the average child for
whom the product is intended.

Self-regulation by Individual Industries

More than forty industries have established their own codes of standards of
advertising practice. Most such codes relate to the local advertising of their
products by their distributors or dealers or franchise owners, especially when
their product has a new or servicing feature—such as air conditioning, car seat
belts, water softeners. Voluntary trade codes usually prove ineffective; the
associations lack the power of enforcement because of the antitrust laws, which
preclude any action that might be regarded as interfering with open com¬
petition.

The Better Business Bureaus

In 1905, as we have previously mentioned, various local advertising clubs

formed a national association that today is known as the American Advertis¬
ing Federation. In 1911, this association launched a campaign for "Truth in
Advertising,’’ for which purpose various vigilance committees were estab¬
lished. These were the forerunners of the Better Business Bureaus, which
 81L

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 The Care a Department Store Takes in Announcing Sales Prices
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Note particularly I, 1, 2, 3, and II, F. Also see p. 168.
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 unit” with some editorial mat¬ Layout. A working drawing crayon, with such shading as
ter on two or more sides. showing how an advertisement occurs produced by variations
Justification of type. Arranging is to look. A printer’s layout is in size and spacing of lines, not
type so that it appears in even- a set of instructions accompany¬ by tone.
length lines, with its letters ing a piece of copy showing ; _,ine plate. A photoengraving
properly spaced. how it is to be set up. made without the use of a
l.c. Lower-case letters. screen from a drawing com¬
K Leaders. A line of dots or dashes posed of lines or masses, which
“Keep standing.” Instructions to to guide the eye across the page, can print on any quality stock.
printer to hold type for further thus: _,inotype composition. Mechan¬
instructions after it has been Lead-in. In relation to audience ical type setting by molding a
used on a job. Where it may be flow, the program preceding an line of type at a time. The
necessary to hold type for any advertiser’s program on the Linotype machine is operated
length of time, it is better to same station. by a keyboard resembling that
have an electrotype of the set-up Leading (pronounced ledding). of a typewriter. (Compare Hand
made. The insertion of metal strips composition; Monotype compo¬
Keying an advertisement. Giv¬ (known as leads between lines sition.)
ing an advertisement a code of type, causing greater space to Lip sync. In making a movie,
number or letter so that when appear between these lines. The especially one involving sing¬
people respond, the source of usual size is 2 points. Leaded ing, an actor may mouth the
the inquiry can be traced. The type requires more room than words without any voice, while
key may be a variation in the type that is not leaded but set a professional singer out of view
address, or a letter or number solid. of the camera does the actual
printed in the corner of a return Lead-out. In relation to audience singing.
coupon. flow, the program following an Lip-synchronization (lip-sync).
Key plate. The plate in color advertiser’s program on the The method in television of
process with which all other same station. having the voice of the per¬
plates must register. Ledger. A high-grade writing former recorded as he speaks.
Key station. The point at which paper of tough body and Requires more rehearsal and
a radio network’s principal pro¬ smooth, plated surface. Used equipment and costs more than
grams originate. There may be for accounting work and for narration.
several. documents. List broker. In direct mail adver¬
Kinescope. Film of a live com¬ Legend. The title or description tising, an agent who rents pros¬
mercial or program made by under an illustration. Some¬ pect lists, compiled by one
photographing the television times called cutline. advertiser, to another advertiser.
tube image, usually made in the He receives a commission for
Letterpress. Printing from a re¬
television studio. his services.
lief, or raised surface. The raised
King-size poster. An outside Listening area. The geographic
surface is inked and comes in
transit display placed on the area in which a station’s trans¬
direct contact with the paper,
sides of vehicles. Size: 30" x mitting signal can be heard
like that of a rubber stamp.
144". See Queen she posters. clearly. The area in which
Limited time station. A radio transmission is static-free and
Known-probability sampling.
station that is assigned a chan¬ consistent is called the primary
See Sample; sampling.
nel for broadcasting for a speci¬
Kraft. A strong paper used for listening area.
fied time only, sharing its
making tension envelopes, Lithography. A printing process
channel with other stations at
wrappers for mailing maga¬ by which an image is formed
different times.
zines, and the like. on special stone by a greasy
Line. A unit for measuring space material, with the design then
L one-fourteenth of a column- being transferred to the print¬
Laid paper. Paper showing inch. ing paper. Today, the more fre¬
regular watermarked pattern, Lineage. The total number of quently used process is Offset-
usually of parallel lines. lines of space occupied by one Lithography in which a thin
Lanham Act. The Federal Trade- advertisement or a series of and flexible metal sheet replaces
Mark Act of 1946, supplanting advertisements. the stone. In this process, the
the previous Federal trademark Line drawing. A drawing made design is "offset” from the
acts. with brush, pen, pencil, or metal sheet to a rubber blanket,

719
 which then transfers the image per which has had its pores that, by law, must be on labels
to the printing paper gives soft filled ("sized”) but which is of certain products, as foods and
reproduction effect. not ironed. Thus it possesses a drugs.
Live. In television and radio, a moderately smooth surface. March issue, for example, close
program which originates at the Smoother than antique, but not February 5. Second month pre¬
moment it is produced, in con¬ so smooth as English-finish or ceding would mean that forms
trast to a program which is sized and supercalendered pa¬ close January 5; third month
previously taped, filmed or re¬ per. preceding, December 5.
corded. Mail order advertising. That Market. A group of people who
Local advertising. Advertising method of selling whereby the are able to buy a product, should
placed and paid for by the local complete sales transaction is they desire it.
merchant or dealer in contrast negotiated through advertising Market profile. A demographic
to national, or general, adver¬ ana the mails, and without the description of the people or the
tising of products sold by many aid of a salesman. Not to be households of a product’s mar¬
dealers. confused with direct mail ad¬ ket. It may also include eco¬
Local-channel station. A radio vertising. nomic and retailing information
station that is allowed just Makegood. (1) Print: An adver¬ about a territory.
enough power to be heard near tisement which is run without Market research. The research
its point of transmission and is charge in lieu of a prior one to gather facts needed to make
assigned a channel on the air which publisher agrees was marketing decisions.
wave set aside for local-channel poorly run. A print advertise¬ Market segmentation. Design¬
stations. (Compare Regional- ment run in lieu of a scheduled ing a product to meet the needs
channel station; Clear-channel one which did not appear. (2) of a particular, identifiable
station.) TV, radio: A commercial run group, or addressing an appeal
Local program. A non-network, by agreement with advertiser in directly to them.
station-originated program. place of one that did not run,
Mass medium. One which is not
Local rate. A reduced rate of¬ or was improperly scheduled.
directed toward a specific audi¬
fered by media to local adver¬ All subject to negotiation be¬
ence and which is widely ac¬
tisers that is lower than that tween advertiser (or agency)
cepted by all types of people,
offered to national advertisers. and medium.
as opposed to class medium.
Locking up. Tightening up the Make-ready. The process of ad¬ Master print (TV). The final
type matter put into a chase justing the form of type or the
approved print of a commercial,
preparatory to going to press. plates for the press to insure
from which duplicates are made
Log. A record of every minute of uniform impression. The skill
for distribution to stations.
television or radio broadcasting. and care in this work represent
Matrix; “mat.” (1) A mold of
An accurate journal required by one of the hidden elements that
paper pulp, or similar substance,
law. serve to make a good printing
made by pressing a sheet of it
Lower case (l.c.). The small let¬ job.
into the type setup or engraving
ters in the alphabet, such as Make-up of a page. The gen¬ plate. Molten lead is poured
those in which this is printed, eral appearance of a page; the into it, forming a replica of
as distinguished from UPPER arrangement in which the edi¬ the original plate known as a
CASE OR CAPITAL LET¬ torial matter and advertising stereotype. (2) The brass molds
TERS. Named from the lower material are to appear. used in the Linotype.
case of the printer’s type cabinet Make-up restrictions. To pre¬ Matter. Composed type, often
in which this type was formerly vent the use of freak-sized ad¬ referred to as: (1) dead mat¬
kept. vertisements, which would im¬ ter—of no further use; (2)
Logotype or logo. A trademark pair the value of the page for leaded matter—having extra
or trade name embodied in the other advertisers, publishers re¬ spacing between lines; (3) live
form of a distinctive lettering quire that advertisements have matter—to be used again; (4)
or design. Most famous exam¬ a minimum depth in ratio to solid matter—lines set close to
ple: Coca Cola. their width. each other; (5) standing mat¬
Mandatory copy. Copy that is ter—held for future use.
M required, by law, to appear on Maximil line rate. The milline
Machine-finish (MF) paper. the advertising of certain prod¬ rate of a newspaper computed
The cheapest of book papers ucts such as liquor, beer, ciga¬ at its maximum rate. See Mil¬
that take halftones well. A pa¬ rettes. Also refers to information line rate.

720
Mechanical. An assembly of pic¬ preceding publication means not originated in the local stu¬
tures and proofs of type, pasted that the closing date falls on dio.
in a desired arrangement (usu¬ the given day during the month Network. Interconnecting broad¬
ally on a piece of cardboard), that immediately precedes the casting stations for the simul¬
to be copied by a camera for publication date of a periodical. taneous broadcasting of televi¬
making into a printing plate. Mortise. An opening cut through sion or radio broadcasts.
Also called mechanical layout. a plate, block, or base, to per¬ Next to reading matter (n.r.).
Medium. (1) The vehicle that mit insertion of other matter, The position of an advertise¬
carries the advertisement, as usually type. ment immediately adjacent to
television, radio, newspaper, Motivational research. A re¬ editorial or news matter in a
magazine, outdoor sign, car search without a questionnaire, publication.
card, direct mail, and so on. in which the respondent is in¬ Nielsen Station Index (NSI).
(2) The tool and method used vited to talk freely on a series These reports, issued by the
by an artist in illustrations, as of selected topics relating to A. C. Nielsen Company, pro¬
pen and ink, pencil, wash, pho¬ the advertiser’s interests, or re¬ vide audience measurement for
tography. act to a situation pictured or individual television markets.
Merchandising. (1) "The plan¬ described to him. Also called Nielsen Television Index
ning involved in marketing the unstructured research. (NTI). National audience
right merchandise or service at Musical clock (radio). A broad¬ measurements for all network
the right place, at the right cast format in which recorded programs.
time, in the right quantities, popular music and time an¬ Nonilluminated (also called
and at the right price.”—Amer¬ nouncements serve as a back¬ Regular”). A poster panel
ican Marketing Association. (2) ground for numerous commer¬ without artificial lighting.
The promotion of an adver¬ cials. Nonstructured interview. An
tiser’s advertising to his sales N interview conducted without a
force, wholesalers, and dealers. NAD. See National Advertising prepared questionnaire in which
(3) The promotion by media to the respondent is encouraged to
Division.
the trade and the consuming NARB. See National Advertising talk freely without direction
public of the product adver¬ from the interviewer.
Review Board.
tised, by means of point-of- NSI. See Nielsen Station Index.
National Advertising Division
purchase materials, in-store re¬ NTI. Nielsen Television Index.
(NAD). The policymaking arm
tail promotions, and guarantee
of the National Advertising Re
seals or tags. O
view Board.
M.F. Machine-finish paper.
National brand. A manufactur¬ O & O stations. TV or radio
Milline rate. A unit for measur¬ er’s or producer’s brand that stations owned and operated by
ing the rate of advertising space has wide distribution through networks.
in relation to circulation; the many outlets; distinct from a Off camera. A television term for
cost of having one agate line private brand. an actor whose voice is heard
appear before one million read¬ National Advertising Review but who does not appear in the
ers. Calculated thus: Board (NARB). The major commercial. Less costly than
1,000,000 X line rate organization of the advertising being On camera.
quantity circulation industry to curb misleading ad¬ Off-screen announcer. The ef¬
= milline vertising. fect of having the voice of an
Modern type. See Old style type. National plan. The tactics in unseen speaker on a television
Modular agency. Also called a advertising campaigns of trying commercial.
la carte agency. See Advertising to get all the business that can Offset. (1) See Lithography. (2)
agency. be secured all over the country The blotting of a wet or freshly
at one time. When rightfully printed sheet against an accom¬
Monotype composition. Type
used, it is the outgrowth of panying sheet. Can be prevented
set by a machine in which the
numerous local plans. by slip-sheeting. Antique paper
individual letters are separately
absorbs the ink and prevents
molded and automatically as¬ Neighborhood showing (Out¬
door). Group of posters in a offsetting.
sembled into lines, as distin¬
guished from Hand composition particular area in which an ad Old English. A style of black-
and Linotype composition. veriser’s product is available. letter or text type, now little
used except in logotypes of
Month preceding. First month Nemo. Any broadcast which is

721
 trade names or names of news¬ advertiser’s commercial. (4) In P.I. (Per inquiry) advertising.
papers. merchandising, a combination A method used in direct re¬
Old style type (o.s.). Originally of products or services sold as sponse radio and television ad¬
the face of roman type with one unit, as a Travel Package, vertising whereby orders as a
slight difference in weight be¬ including transportation and result of a commercial are sent
tween its different strokes, as hotel accommodations. directly to the station. The ad¬
contrasted with modern type, Package insert. A card, folder or vertiser pays the station on a
which has sharp contrast and booklet included in a package, per inquiry (or per order) re¬
accents in its strokes. Its serifs often used for recipes, discount ceived basis.
for the most part are oblique; coupons and ads for other mem¬ Pi or pied type. A type setup
modern serifs are usually hori¬ bers of the product family. that has become disarranged.
zontal or vertical. When attached to outside of Pica; pica em. The unit for
On camera. A television term package, called package outsert. measuring width in printing.
for an actor whose face appears Participation (TV, Radio). An There are 6 picas to the inch.
in a commercial. Opposite of announcement within a pro¬ Derived from pica, the old
Off camera. Affects the scale of gram as compared with one name of 12-pt. type (% inch
compensation. scheduled between programs. high), and the letter M of that
One-time rate. The rate paid by Pattern plate. (1) An electro¬ series, whose width likewise is
an advertiser who uses less space type of extra heavy shell used Ve inch. A page of type 25 picas
than is necessary to earn a time for molding in large quantities wide is 4Ve inches wide (25-^6
or rate discount, when such dis¬ to save wear on the original = 4%).
counts are offered. Same as plate or type. (2) An original Picture resolution. The clarity
Transient rate, Basic rate, and to be used for the same purpose. with which the television image
Open rate. Photocomposition. A method of appears on the television screen.
One-way screen. A halftone with setting type by a photographic Piggyback. A practice born be¬
the screen in one direction only; process only. Uses no metal. fore 30 second commercials
it does not have the cross-screen Employs computer plus minia¬ came in (late 1960’s) whereby
that gives the dot effect. Good ture TV system. an advertiser would buy a 60
for odd effects. Makes tooling Photoengraving. (1) An etched, second spot and play the com¬
difficult. relief printing plate made by a mercial of two products on it
Open end. A broadcast in which photomechanical process—as a (the second being the "piggy¬
the commercial spots are added halftone or line cut. (2) A back”). This practice waned
locally. print from such a plate. (3) with the 30 second commercial.
Open rate. In print, the highest The process of producing the Some advertisers trying to split
advertising rate on which all plate. this with piggyback. Opposed
discounts are placed. It is also Photoscript (TV). A series of by the industry as adding to
called Basic Rate, Transient photographs at the time of "clutter.” See Integrated com¬
Rate, or One-time Rate. shooting a TV commercial pic¬ mercial.
Opticals. The visual effects that ture based on the original script Pilot film (TV). A sample film
are put on a television film in or storyboard. (Pp. 431 & 433.) to show what a series will be
a laboratory, in contrast to those Used for keeping record of like. Generally specially filmed
that are included as part of the commercial, also for sales pro¬ episodes of television shows.
original photograph. motion purposes. Pioneering stage. The advertis¬
Ahotosetting. A method of set¬ ing stage of a product in which
P ting hot type from computer¬ the need for such product is not
Package. (1) A container. (2) ized film or tape. Not to be recognized and must be estab¬
In radio or television, a com¬ confused with photocomposi¬ lished, or when the need has
bination assortment of time tion. been established but the success
units, sold as a single offering ^otostat. One of the most use¬ of a commodity in filling those
at a set price. (3) A special ful aids in making layouts or requirements has to be estab¬
radio or television program or proposed advertisements. A lished. See Competitive stage;
series of programs, bought by rough photographic reproduc¬ Retentive stage; Spiral.
an advertiser (usually for a tion of a subject; inexpensive Plant operator. In outdoor ad¬
lump sum) that includes all and can be made quickly vertising, the person who ar¬
components all ready to broad¬ (within half an hour if de¬ ranges to lease, erect, and
cast with the addition of the sired) . maintain the outdoor sign and

722
 to sell the advertising space on The number of panels in a or newspaper for which the ad¬
showing varies from city to city, vertiser must pay a premium.
it.
and is described in terms of a Otherwise the advertisement
Plate. The metal or plastic from
#100 showing, a #50 showing, appears in a run-of-paper
which impressions are made by
a #25 showing. This identifica¬ (ROP) position; that is, wher¬
a printing operation.
tion has no reference to the ever the publisher chooses to
Plated stock. Paper with a high
actual number of posters in a place it.
gloss and a hard, smooth sur¬
face, secured by being pressed showing, nor does it mean per¬ Premium. An item, other than
centages. It is merely a con¬ the product itself, given to pur¬
between polished metal sheets.
venient way of describing the chasers of product as an induce¬
Platen. The part of a printing
size of different assorted pack¬ ment to buy. Can be free with
press that holds the paper and
ages of posters. purchase, or available upon
presses it against the type or
Posting date (outdoor). The proof of purchase and a pay¬
plate.
date posting for an advertiser ment (self-liquidating) .
Playback. (1) The playing of a
begins. Usually, posting dates Primary circulation. See Circu¬
recording for audition pur¬
are every fifth day starting with lation.
poses. (2) The report of a
the first of the month. How¬ Primary service area. The area
viewer or reader as to what
ever, plant operators will, if to which a radio station delivers
message a commercial or adver¬
possible, arrange other posting a high level of signals of un¬
tisement left with him.
dates when specifically re- failing steadiness and of suffi¬
Point; pt. (1) The unit of mea¬ cient volume to override the
surement of type, about Vvi existing noise level both day
Posting leeway (outdoor). The
inch in depth. Type is specified and night and all seasons of
five working days required by
by its point size, as 8 pt., 12 the year, determined by field in¬
plant operators to assure the
pt., 24 pt., 48 pt. (2) The unit tensity measurements.
complete posting of a showing.
for measuring thickness of pa¬
This margin is needed to allow Prime time. A continuous period
per, one thousandth of an inch.
for inclement weather, holidays, of not less than three hours per
Point-of-purchase advertising. etc., as well as the time for ac¬ broadcast day as designated by
Displays prepared by the man¬ tual posting. the station as reaching peak
ufacturer for use by the retailers P.P.A. Periodical Publishers As¬ audiences. In television usually
in the stores selling the manu¬ sociation, a group of magazine 7:00 P.M. to 11:00 p.m. E.S.T.
facturer’s products. publishers that passes on agency (6:00 p.m. to 10:00 P.M.
Poll. An enumeration of a sam¬ credit. For newspaper credit, see C.S.T.).
ple. Usually refers to sample AN PA. Prime time (radio). The time of
opinions, attitudes and beliefs. Pre-date. In larger cities, a news¬ the day when most men are
Positioning. Deciding for what paper issue that comes out the going to and from work (usu¬
service you want the product night before the date it carries, ally 7-8:30 a.m. and 4:30-6:30
known. Noxzema, long known or a section of the Sunday issue p.m., depending upon the city).
as a medical cream for eczema published and mailed out dur¬ Called drive time.
was repositioned as a facial ing the week preceding the Prime time (TV). Refers essen¬
cream. Sunday date. tially to those hours when view¬
Poster panel. A standard surface Preemption; preemptible time. ing is heaviest. This varies from
on which outdoor posters are (1) The recapturing of a time region to region. In the Mid¬
placed. The posting surface is period by a network or station west usually from 6:00 to 10
of sheet metal. An ornamental for important news or special p.m. In the East and West
molding of standard green program. (2) By prior agree¬ coasts from 7 to 11 p.m. (Ra¬
forms the frame. The standard ment, the resale of a time unit dio) called Drive Time usually
poster panel is 12 feet high by of one advertiser to another 7-8:30 a.m. and 4:30 to 6:30
25 feet in length (outside di¬ (for a higher rate). Time may p.m., but varies by city.
mensions) . be sold: non-preemptive (NP) Principal register. The main
Poster plant. The organization at the highest rate; two weeks register for recording trade¬
that provides the actual outdoor preemptible (lower rate) or marks, service marks, collective
advertising service. immediately preemptible (IP) marks, and certification marks
Poster showing. An assortment the lowest rate. under the Lanham Federal
of outdoor poster panels in dif¬ Preferred position. A special Trade-Mark Act.
ferent locations sold as a unit. desired position in a magazine Printers’ Ink Model Statute.

723
 The act directed at fraudulent tant in deciding upon the a full showing in or outdoor or
advertising, prepared and spon¬ desirability of the station and transportation advertising.
sored by Printers’ Ink, the ad¬ hour. See Lead-out. Queen-size poster. An outside
vertising journal. Program opposite. The televi¬ transit advertising display
Private brand. The trademark sion or radio programs that are placed on the sides of vehicles
of a distributor of products running over other stations at (usually the curb side). Size:
which he alone sells, in con¬ the same time as the given pro¬ 30" x 88". See King size post¬
trast to manufacturers’ brands, gram and broadcasting to the ers.
which are sold through many same territory; the competition Quota. A set goal for sales or
outlets. Also known as private for the audience that a program other effort in terms of dollars,
labels. experiences. sales units, or a percentage of
Process plates. Photoengraving Program preceding. The televi¬ the total goal.
plates for printing in color. Can sion or radio program that is
print the full range of the spec¬ directly before a given program. R
trum by using three plates, each A good "program preceding’’
bearing a primary color—red, enhances the desirability of time Radio rating point. One per
yellow, blue—plus a black plate. on the air. See Lead-in. cent of the homes in the mea¬
Referred to as 4-color plates. Program profile. The graphic sured area whose sets are tuned
See Process printing. to that station, used for making
presentation of the reactions o:
Process printing. Letterpress comparisons of spot stations.
a group of program listeners or
color printing in which color viewers participating in a test Randomization. In consumer re¬
is printed by means of process situation involving some type of search a method of securing
plates. program analyzer. random (unbiased) selection of
Producer. One who originates Progressive proofs. A set of respondents. See Sample; sam¬
and presents a television or ra¬ pling.
photoengraving proofs in color,
dio program. in which: the yellow plate is Rate card. A card giving the
Production. (1) The conversion printed on one sheet and the space rates of a publication and
of an advertising idea into an red on another; the yellow and data on mechanical requirements
advertisement, mainly by a red are then combined; next and closing dates.
printing process. (2) The build¬ the blue is printed and a yel¬ Rate-holder. The minimum¬
ing, organization, and presenta¬ low-red-blue combination made. sized advertisement that must
tion of a television or radio Then the black alone is printed, appear during a given period if
program. and finally all colors are com¬ an advertiser is to secure a cer¬
Production department. (1) bined. The sequence varies. In tain time or quantity discount.
The department responsible for this way the printer matches up It holds a lower rate for an ad¬
the mechanical production of his inks when printing color vertiser.
an advertisement, dealing with plates. Rate protection. The length of
printers and engravers. (2) The Proof. (1) An inked impression time an advertiser is guaranteed
department responsible for the of composed type or of a plate a specific rate by a medium.
proper preparation of a televi¬ for inspection or for filing. (2) May vary from six months to a
sion or radio program. In engraving and etching, an year from the date of signing a
Production director. (1) Indi¬ impression taken to show the contract.
vidual ip charge of a television condition of the illustration at Rating point. (1) The percen¬
or radio program. (2) Head of any stage of the work. Taking tage of TV households a TV
department handling print pro¬ a proof is pulling a proof. station reaches with a program,
duction. - >ublisher’s statement. The state¬ compared with the total of all
Profile. (1) A detailed study of a ment of circulation issued by a TV households in that area.
medium’s audience, broken publisher. The percentage varies with the
down by size, age, sex, viewing time of the day. A station may
habits, income, education and Q have a 10 rating between 6 and
so on. (2) A study of the char¬ Quads. Blank pieces of metal 6:30 p.m., and a 20 rating be¬
acteristics of the users of a prod¬ (not typehigh) “used by the tween 9 and 9:30 p.m. (a real
uct or of a market. printer to justify (or fill out) hit!). (2) In the case of radio,
Program following. The televi¬ lines where the amount of type the percentage of people who
sion or radio program that fol¬ does not do so. listen to a station at a certain
lows a given program. Impor¬ Quarter showing. One fourth of time.

724
Reach. The total audience a me¬ Relief printing. Printing in the Roman family. (2) Type
dium actually covers. which the design reproduced is faces that are not italics are
Reading notices. Advertisements raised slightly above the sur¬ called roman.
in newspapers set up in a type rounding, nonprinting areas. ROP. See Run-of-paper position.
similar to that of the editorial Letterpress is a form of relief ROS. See Run of schedule time.
matter. Must be followed by printing contrasted with Inta¬ Rotary plan (outdoor). A pro¬
"Adv.” Charged for at rates glio printing and Lithography. gram whereby movable bulle¬
higher than those for regular Remote control. The operation tins are moved from one fixed
ads. Many publications will not of broadcasting a program from location to another one in the
accept them. the regular studios of the sta¬ market at regular intervals. The
Ream. In publishing and adver¬ tion. locations are viewed and ap¬
tising, 500 sheets of paper (not Remote pickup. A broadcast proved in advance by the adver¬
480). Thousandsheet counts originating outside the studio, tiser.
now being used as basis of or¬ as from a hotel ballroom, foot¬ Rotary press. A press possessing
dering paper. ball field, or the like. no flat bed, but printing entirely
Rebroadcast. A television or ra¬ Repro proofs, or reproduction with the movement of cylinders.
dio program repeated at a later proofs. Exceptionally clean and Rotogravure. The method of in¬
hour to reach the parts of the sharp proofs from type for use taglio printing in which the
country in a different time belt. as copy for reproduction. impression is produced by cylin¬
Recognized agency. An adver¬ Residual. A sum paid to certain der plates chemically etched and
tising agency recognized by the talent on a TV commercial affixed to rollers of a rotary
various publishers or broadcast every time the commercial is run press; useful in large runs of
stations and granted a commis¬ after 13 weeks, for life of com¬ pictorial effects.
sion for the space it sells to ad¬ mercial. Rough. In the making of layouts,
vertisers. Respondent. One who answers a the first step will usually be to
Regional-channel station. A questionnaire or is interviewed make a crude sketch to show
radio station that is allowed basic idea or arrangement. This
in a research sutdy.
more power than a local station is called a "rough.”
Retentive stage. The third stage
but less than a clear-channel Rough cut (TV). A film cut
of a product, reached when its
station. It is assigned a place on and edited into a smooth-flow¬
general usefulness is every¬
the frequency band set aside for ing work print.
where known, its indivdiual
regional channel stations. See Routing out. Tooling out dead
qualities thoroughly appreci¬
Local channel and Clear-chan¬ metal on an engraving plate.
ated, and when it is satisfied to
nel. retain its patronage merely on Run-of-paper (ROP) position.
Register. Perfect correspondence the strength of its past reputa¬ Any location in a publication
in printing; of facing pages tion. See Pioneering stages convenient to publisher in con¬
when top lines are even; of Competitive stage; Spiral. trast to preferred position.
color printing, when there is Run-of-schedule (ROS). Com¬
Retouching. The process of cor¬
correct superimposition of each mercial announcements which
recting or improving art work,
plate so that the colors mix can be scheduled at the station’s
especially photographs.
properly. discretion anytime during the
Reversed plate. (1) A line-plate
Registering trademark. In the period specified by the seller,
engraving in which whites
United States, the act of record¬ (e.g., ROS, 10 a.m.-4:30 p.m.,
comes out black, and vice versa.
ing a trademark with the Com¬ Monday through Friday.)
(2) An engraving in which
missioner of Patents. Rushes (TV). The first, uncor¬
right and left, as they appear in
Register marks (engraving). rected prints of a commercial.
the illustration, are transposed.
Cross lines placed on a copy to Also called dailies.
appear in the margin of all Riding the showing. A physical
negatives as a guide to perfect inspection of the panels which S
register. comprise an outdoor showing. Saddle stitching. Binding a
Release. A legally correct state¬ Roman type. (1) Originally, booklet by stitching it with wire
ment by a person photographed type of the Italian and Roman through the center, passing
authorizing the advertiser to school of design, as distin¬ through the fold in the center
use that photograph. In the case guished from the black-face Old pages and the backbone. En¬
of minors, the guardian’s re¬ English style. Old style and ables the booklet to lie flat.
lease is necessary. modern are the two branches of When a booklet is too thick for

725
 this method, side stitching is sample is one selected from loudspeaker volume by both
used. whatever portion of the universe day and night and at all seasons
SAG. Screen Actors’ Guild. happens to be handy. of the year. See Primary service
Sales promotion. (1) Those Satellite television. TV pro¬ area.
sales activities that supplement grams relayed from far distances SEG. Screen Extras Guild.
both personal selling and mar¬ by a satellite. Segmentation. See Market seg¬
keting, co-ordinate the two, and Saturation. A media pattern of mentation.
help to make them effective; wide coverage and high fre¬ Seque. (Pronounced segway; Ital¬
for example, displays. (2) More quency during a concentrated ian, "it follows.”) The transi¬
loosely, the combination of per¬ period of time, designed to tion from one musical theme to
sonal selling, advertising, and achieve maximum impact, cov¬ another without a break or an¬
all supplementary selling activi¬ erage, or both. nouncement.
ties. S.C. (1) Single column. (2) Serif. The short marks at top and
Sales-promotion department. Small caps. bottom of Roman lettering.
The liaison department between Scaling down. Reducing illustra¬ Originally chisel marks to indi¬
the sales department and the tions to the size desired. cate top and bottom of stone
advertising department which Scatter plan (TV). The use of lettering.
investigates new markets, in¬ announcements over a variety Service mark. A word or name
quiries resulting from advertise¬ of network programs and sta¬ used in the sale of services
ments, and follows up sales¬ tions, to reach as many people to identify the services of a
men’s visits with proper letters as possible in a market. firm and distinguish them from
and literature. Score. To crease cards or thick those of others, e.g., Hertz
Sample; sampling. (1) The sheets of paper so that they can Drive Yourself Service; Weight
method of introducing and pro¬ be folded. Watchers Diet Course. Com¬
moting merchandise by distrib¬ Screen. The finely crossruled parable to trademarks for prod¬
uting a miniature or full-size sheet used in photomechanical ucts.
trial package of the product free plate-making processes to re¬ Sheet. The old unit of poster size,
or at a reduced price. (2) produce the shades of gray 26 x 39 inches. The standard-
Studying the characteristics of a present in a continuous tone size posters are 24 sheets and
representative part of an entire photograph. Screens come in 30 sheets. There are also 3 and
market, or universe, in order to various rulings, resulting in 6 sheets posters.
apply to the entire market the more, or fewer, "dots” to the
SIC. See Standard Industrial Clas¬
data secured from the miniature square inch on the plate, to
sification.
part. A probability sample is conform with the requirements
one in which every member of of different grades and kinds Side stitching. The method of
the universe has a known prob¬ of printing paper. wire-stitching from one side of
ability of inclusion. A random Script (TV). A description of the a booklet to the other. Wiring
sample is a probability sample video, along with the accom¬ can be seen on front cover and
in which names are picked from panying audio, used in prepar¬ on back. Used in thick booklet
a list with a fixed mathematical ing a storyboard, or in lieu of work. Pages do not lie flat. See
regularity. A stratified quota it. Saddle stitching.
sample (also known as a quota Secondary meaning. When a Signal. In television or radio, a
sample) is one drawn with cer¬ word from the language has reproduction of that which has
tain predetermined restrictions long been used as a trademark been broadcast.
as to the characteristics of the for a specific product and has Signal area. The territory in
people to be included. An area come to be accepted as such, it which a radio or television
sample (or stratified area sam¬ is said to have acquired a "sec¬ broadcast is heard. Can be pri¬
ple) is one in which one geo¬ ondary meaning,” and may be mary, where most clearly heard,
graphical unit is selected as typi¬ eligible for trademark registra¬ or secondary, where heard sub¬
cal of others in its environment. tion. ject to more interference.
In a judgment sample, an ex¬ Secondary service area (radio).
Signal (TV, Radio). The com¬
pert chooses what he considers The area beyond the primary munication which is received
to be representative cases suit¬ service area where a broadcast¬ electronically from the broad¬
able for study, based on his ex¬ ing station delivers a steady sig¬ cast station. One speaks of a
perience and knowledge of the nal of sufficient intensity to be strong signal” or a "weak
field. A convenience or batch a regular program service of signal.”

726
Signature. (1) The name of an side electronic layer which time or space outside the city
advertiser. (2) The musical blankets the earth. At night the of origin.
number or sound effect that AM waves bound back at an Spectacolor. Similar in purpose
regularly identifies a television angle; hence AM broadcasts and method to Hi Fi color, ex¬
or radio program. (3) A sheet can be received at night over cept color pages come out with
folded ready for stitching in a vast distances. See Ground registration points to fit news¬
book, usually sixteen pages, but waves. paper page; no need for con¬
with thin paper thirty-two Slip-sheeting. Placing a sheet of tinuous design.
pages; a mark, letter, or num¬ paper (tissue or cheap porous Spectacular. An outdoor sign
ber is placed at the bottom of stock) between the sheets of a built to order, designed to be
the first page of every group of printing job to prevent them conspicuous for its location,
sixteen or thirty-two pages to from offsetting or smudging as size, lights, motion, or action.
serve as a guide in folding. they come from the press. The costliest form of outdoor
Silhouette halftone. See Half¬ Slug. Notation placed on copy to advertising.
tone. identify it temporarily, and not Spiral, advertising. The graphic
Silk screen. A printing -process to be reproduced in final print¬ representation of the stages
in which a stenciled design is ing. through which a product might
applied to a screen of silk or Small caps (abbreviated s.c. or pass in its acceptance by the
organdy. A squeegee forces sm. caps). Letters shaped like public. The stages are pioneer¬
paint or ink through the mesh upper case (capitals) but about ing, competitive, retentive.
of the screen to the paper di two-thirds their size—nearly Split run. A facility available in
rectly beneath. the size of lower case letters. some newspapers and magazines
This sentence is set with a wherein the advertiser can run
Simulation (computer). The
REGULAR CAPITAL LETTER AT different advertisements in al¬
process of introducing synthetic
THE BEGINNING, THE REST IN ternate copies of the same is¬
information into a computer for
SMALL CAPS. sue at the same time. A pre-test¬
testing; an application for solv¬
SMSA. See Standard Metropolitan ing method used to compare
ing problems too complicated
Statistical Area. coupon returns from two differ¬
for analytical solution.
ent advertisements published
Simulcast. The simultaneous play¬ Snipe. A copy strip added over a
under identical conditions.
ing of a program over AM-FM poster advertisement—such as
radio. Now ruled out by FCC. a dealer’s name, special sale Sponsor. The firm or individual
price, or another message. (Also that pays for talent and broad¬
SIU. Sets in use (TV). casting station time for a radio
referred to as an "overlay.’’)
Sized and supercalendered pa¬ feature; the advertiser on the
Sound effects. Various devices
per (s. and s. c.). Machine- air.
or recordings used in television
finish book paper that has been Spot (TV and radio). (1) Media
or radio to produce lifelike
given extra ironings to insure Use. The purchase of time from
imitations of sound, such as
a smooth surface. Takes half¬ an independent station, in con¬
walking up stairs, ocean waves,
tones very well. trast to purchasing it via a net¬
phone bells, and auto horns.
Sized paper. Paper that has re work. When purchased by a na¬
ceived a chemical bath to make Space buyer. The officer of an tional advertiser it is, strictly
advertising agency responsible speaking, iiational spot, but is
it less porous. Paper sized once
and ironed (calendered) is for the selection of printed referred to just as spot. When
known as machine-finish. If it media for the agency’s clients. purchased by a local advertiser
is again ironed, it becomes sized Space discount. A discount given it is, strictly speaking, local
and supercalendered (s. and by a publisher for the linage an spot, but is referred to as local
s.c.). advertiser uses. Compare Time TV or local radio. (2) Creative
Skin pack. A packaging method discount. use. The text of a short an¬
whereby a plastic film is pulled Space schedule. A schedule show¬ nouncement.
tightly around a product on a ing the media in which an ad¬ Spread. (1) Two facing pages, a
card. Used for "card merchan¬ vertisement is to appear, the doublepage advertisement. (2)
dising.’’ dates on which it is to appear, Type matter set full measure
Sky waves. The electromagnetic its exact size, and the cost. across a page, not in columns.
waves that shoot toward the sky Special representative. An in¬ (3) Stretching any part of a
from a station. During the day dividual or organization that broadcast to fill the full allotted
they all go through the Heavi¬ represents a medium in selling time of the program.

727
 Spread posting dates. An ad¬ raised outlines being producec ing over the face of an adver¬
vertiser can have one posting by stamping over a counter die. tisement already printed.
date for half the panels of his Used for monograms, crests, sta¬ Sustaining program. Entertain¬
showing. Then have the other tionery, and similar social anc ment or educational feature per¬
half posted on a subsequent business purposes. formed at the expense of a
date, say 10 or 15 days later. Stereotype. Duplicate printing broadcasting station or network;
Stage. See Spiral. plate made by casting molten in contrast to a commercial pro¬
Staggered schedule. A schedule metal into a Matrix or mole gram, for which an advertiser
of space to be used in two or of wood fiber which has been pays.
more periodicals, arranged so made under pressure. Lacks the Sworn statement. When a pub¬
that the insertions alternate. strength and sharpness of detail lisher does not offer a certified
Standard Industrial Classifica¬ of an electrotype. Newspapers audited report of his circulation
tion (SIC). The division of all are printed from stereotype. (as many small and new pub¬
industry, by the Bureau of the Stet. A proofreader’s term—"Let lishers do not) he may offer
Budget, into detailed standard it stand as it is; disregard advertisers a sworn statement
classifications, identified by code change specified.” A dotted line of circulation.
numbers. is placed underneath the letter Syndicated services (research).
Standard Metropolitan Statisti¬ or words to which the instruc¬ Reports of consumers watching
cal Area (SMSA). An alloca¬ tions apply. TV programs, listening to radio,
tion of territories in a metro¬ Storecasting. The broadcasting or reading specific publications.
politan area as defined by the of radio programs and com¬ Sold on a subscription basis to
Bureau of the Budget, brought mercials in stores; usually super¬ advertisers, agencies and others
to county line basis. Used in markets. interested.
sales planning and scheduling. Storyboard. Series of drawings Syndicated TV program. A
“Stand by.” Cue that the radio used to present a proposed com¬ program that is sold or distrib¬
program is about to go on the mercial. Consists of illustrations uted to more than one local sta¬
air. of key action (video), accom¬ tion by an independent orga¬
Standby space. Some magazines panied by the audio part to go nization outside of the national
will accept an order to run an with it. Used for getting ad¬ network structure. Includes re¬
advertisement whenever and vertiser approval; also as a runs of former network entries,
wherever it wishes, at an extra guide in production. and movies that are marketed
discount. Advertiser forwards Strip. (1) TV or radio. A com¬ to stations by specialized firms
plate with order. Helps maga mercial scheduled at the same that had a hand in their produc¬
zine fill odd pages or spaces. time on successive days of the tion.
Station breaks. Those periods of week, as Monday through Fri¬ Syndication, Trade-out. See
time between television pro¬ day. (2) Newspapers. A shal¬ Trade-out Syndication.
grams, or within a program as low advertisement at the bot¬
designated by the program tom of a newspaper, across all
originator, that are set aside for columns. T. Time, or times, as 1-t, 5-t, the
local station identification and Substance No. (Usually followed frequency with which an ad¬
spot announcements called ID. by a figure, as Substance No. vertisement is to appear.
Usually 8 seconds 16, Substance No. 20, Substance T.A.B. See Traffic Audit Bureau.
Station clearance. See Clear time. No. 24.) In specifying paper
Tag (TV). A local retailer’s mes¬
Station Satellite. A station, often stock, the equivalent weight of
sage at the end of a manufac¬
found in regions of low popula¬ a given paper in the standard
turer’s commercial. Usually 10
tion density, that is wholly de¬ size.
seconds of a 60-second com¬
pendent upon another, carrying Supplements (newspaper). mercial.
both its programs and com¬ Loose inserts carried in a news¬ Take-one. A mailing card or
mercials. Purpose is to expand paper. Printed by advertiser. coupon attached to an inside
coverage of the independent sta¬ Must carry "supplement” and transit advertisement, which the
tion and offer service to remote newspaper logotype to meet rider is invited to tear off and
areas. Nothing to do with TV newspaper postal requirements. mail for further information on
from satellites. Surprint. (1) a photoengraving the service or offering by the
Steel-die embossing. Printing in which a line-plate effect ap¬ advertiser.
from steel dies engraved by the pears over the face of a half¬ Tear sheets. Copies of advertise¬
intaglio process, the sharp, tone, or vice versa. (2) Print¬ ments torn from newspapers.

728
Telecast. A sound and pictorial help identification. May appear scribe to various transcription
image that has been sent by on packages as well as in ad¬ libraries.
television. vertising (e.g., Green Giant). Transient rate. Same as one¬
T.F. (1) Till-forbid. (2) To fill. Trademark. Any device or word time in buying space.
(3) Copy is to follow. that identifies the origin of a Transition time. See Fringe
Till-forbid; run T.F. Instruc¬ product, telling who made it or time.
tions to publisher meaning: who sold it. Not to be confused Transparency. Same as decalco-
"Continue running this adver¬ with trade name. mania.
tisement until instructions are Trade name. A name that ap¬ Traveling display. An exhibit
issued to the contrary.’’ Used in plies to a business as a whole prepared by a manufacturer of
local advertisement. and not to be an individual a product and loaned by him to
Time Classifications (TV). Sta¬ product. each of several dealers in rota¬
tions assign alphabetical values Trade-Out Syndication. An ad¬ tion. Usually based on the prod¬
to specific time periods for vertiser will produce a TV pro¬ uct and prepared in such a way
easier reference while reading gram series in which he places as to be of educational or
their rate cards. The values gen¬ his own commercials. He then dramatizing value.
erally extend from A through offers the program without cost Trimmed flush. A booklet or
D. In an average market, the to stations, which can then sell book trimmed after the cover
classification might work as fol¬ remaining time to other ad¬ is on, the cover thus being cut
lows: A A and A for Prime vertisers in addition to saving flush with the leaves. Compare
Time; B for Early Evening and program charges. Chief advan¬ with Extended covers.
Late News; C for Day Time tage: keeps other commercials Triple Spotting. Three commer¬
(afternoon) and Late Night; D away from his. cials back to back.
for the periods from 1 A.M.
Traffic Audit Bureau (T.A.B.). True-line. The rate per million
until sign-off and from sign-on
An organization designed to in¬ circulation of a newspaper
until noon.
vestigate how many people pass within a trading area (exclud¬
Time clearance. Making sure and may see a given outdoor ing outside trading area). This
that a given time for a specific
sign, to establish a method of is in contrast to the milline rate
program or commercial is avail¬
evaluating traffic and measuring which is its rate per million
able. a market. circulation based on its total
Time discount. A discount given
Traffic count. In outdoor ad¬ circulation. Used by retail ad¬
to an advertiser for the fre¬ vertisers in comparing different
vertising, the number of pedes¬
quency or regularity with which newspaper costs measured in
trians and vehicles passing a
he inserts his advertisements.
panel during a specific time terms of only that part of the
Distinguished from quantity dis¬
period. total circulation in which a
count, for amount of space used.
Traffic department. The depart¬ store is interested.
Tint block. Usually a solid piece
ment in an advertising agency TV. Television.
of zinc, used to print a light
responsible for the prompt ex¬ TvQ score. Percentage of people
shade of ink for a background.
ecution of the work in the re¬ familiar with a network pro¬
To fill (T.F.). Instructions to
spective departments and for gram who also consider it one
printer meaning: "Set this copy
turning over the complete mate¬ of their favorites. A commercial
in the size necessary to fill the
rial for shipment to the for¬ service.
specified space indicated in the
warding department on sched¬ TV week. Sunday to Saturday.
layout.’’
ule time. 25 X 38-80. Read twenty-five,
Tr. Transpose type as indicated,
Traffic flow map (outdoor). An thirty-eight, eighty. The method
a proofreader’s abbreviation.
outline map of a market’s of expressing paper weight,
Trade advertising. Advertising streets scaled to indicate the meaning that a ream of paper
directed to the wholesale or re¬ relative densities of traffic. 25 X 38 inches in size weighs
tail merchants or sales agencies
80 lbs. Similarly, 25 X 38-60,
through whom the product is Transcription. See Electrical
transcription. 25 X 38-70, 25 X 38-120, 17
sold.
X 22-16, 17 X 22-24, 20 X 26-
Trade character. A representa¬ Transcription program library.
A collection of transcription 80, 38 X 50-140.
tion of a person or animal, real¬
istic or fanciful, used in con¬ records from which the radio Type face. The design and style
station may draw. Stations sub- of a type letter. Type faces are
junction with a trademark to

729
 usually named after men, as, Video. The visual portion of TV special promotions in each of
Caslon, Della Robbia, Janson, television broadcast. See Audio. these areas.
Goudy. In machine composi¬ Videotape. An electronic method Wax-mold electrotype. An elec¬
tion, the faces are known also trotype made from an impres¬
of recording images and sound
by code numbers. sion taken in a sheet of wax;
on tape. Most TV shows that
Type page. The area of a page appear live (except sports less expensive than lead mold.
that type can occupy; the total events) are done on videotape. See Electrotype.
area of a page less the margins. Wet printing. Color printing on
Videotape recording. A system
which permits instantaneous specially designed high-speed
U
playback of a simultaneous re¬ presses with one color following
UHF. See Ultra High Frequency. another in immediate succession
cording of sound and picture on
Ultra High Frequency UHF. before the ink from any plate
a continuous strip of tape.
Television channels 14-83, op¬ has time to dry.
erating on frequencies from 470 Vignette. A halftone in which W.F. Wrong font.
Me to 890 Me. the edges (or parts of them) are
shaded off gradually to very Window envelope. A mailing
Unaided recall. A research envelope with a transparent
light gray.
method for learning whether a panel, permitting the address
person is familiar with a brand, Voice-over announcer. In tele¬ on the enclosure to serve as a
slogan, advertisement or com¬ vision, a slide with an announcer
mailing address as well.
mercial without giving him a who does not appear.
Work-and-turn. Printing all the
cue as to what it is. "What pro¬
pages in a signature from one
gram did you watch last night?" W
form and then turning the paper
See Aided recall.
Wait order. An advertisement and printing on the second side,
set in type ready to run in a making two copies or signatures
V
newspaper, pending a decision when cut.
VAC. Verified Audit Circulation
on the exact date (frequent in Wove paper. Paper having a
by an auditing organization
local advertising). very faint, cloth-like appear¬
which believes every publication
ance when held to the light.
selling advertising should have Warm-up. The 3- or 5-minute
an audit available whatever the period immediately preceding Wrong font (w.f.). Letter from
circulation method (paid or a line broadcast in which the one series mixed with those
free). announcer or star puts the studio from another series, or font.
audience in a receptive mood See if you can pick out the
Value goal. The determination by
by amiably introducing the cast wrong font in this sentence.
a company of the amount and
form of value it sets out to offer of the program, or discussing Z
in a product. its problems. Zinc etching. A photoengraving
Vertical publications. Those Wash drawing. A brushwork il¬ in zinc. Term is usually applied
business publications dealing lustration, usually made with to line plates.
with the problems of a specific diluted India ink or water color Zone plan. The tactics in an ad¬
industry, as Chain Store Age, so that, in addition to its black vertising campaign of concen¬
National Petroleum News, Tex¬ and white, it has varying shades trating on a certain limited geo¬
tile World. See Horizontal pub¬ of gray, like a photograph. Half¬ graphical area. Also known as
lications. tones, not line plates, are made local plan.
VHF. Very High Frequency. The from wash drawings. Zooming. The effect in television
frequency on the electromag¬ Wave posting (Outdoor). Con¬ of having a subject suddenly
netic spectrum assigned to tele¬ centration of poster showings in grow bigger on the screen, like
vision channels 2-13, inclusive. a succession of areas within the the locomotive of a train rush¬
See Ultra high frequency. market. Usually coincides with ing right at you.

730
 Index

A costs of, 32—36

criticisms of, 31—45
A, B, and C newspaper schedules, 205—6 economic aspects, 24—25
A&P, 487 end-product, 59, 66
AAAA (See American Association of expenditures, 19, 54—56 (See also
Advertising Agencies) Expenditures, advertising)
ABC (See Audit Bureau of Circulations) favorable conditions for, 51—56
ABC network: forms by marketing function, 59—60
radio, 173 future of, 20
television, 142, 555 goals, 49, 509-10
Abex Company, 522 history of, 3-20
Account executive, 573 information services, 704—5
Account management director, 572-73 legal controls on, 677—92
Account supervisor, 573 and monopolies, 36—38
Accutron (Bulova), 344, 370 and moral concern, 44
Acetate dub, 454 outdoor (See Outdoor advertising)
Adams, James Truslow, 15 as part of total marketing program, 120
ADI (See Areas of Dominant Influence) pioneering, 78—82, 89—92, 94, 96
Administrative director, 576 programs, 152—27
AdTel, 526 and psychology, 295—305
Advertised brands, definitions, 35-36 public-service, 60, 70—71
Advertisement: purposes of, 60
appraising, 510—19 retail, 609, 610—13
copyrighting, 691—92 retentive, 86—87, 90
creation of, 378 roles of, 49—73
small, 375 services, 68, 703—4
structure of, 339—47 social aspects of, 24—25, 56—57, 60
testing, 510-19 and sociology, 289-95
Advertisers: specialties, 270—76
associations, 702—4 spiral, 77—97
list of top 50 national, 130 stages, (See Stages of advertising)
self-regulation by, 685—86, 688—89 of stocks and bonds, 684
small, 122 trade and professional, 58
Advertising: uniqueness of, 318
abuses, 18 variations in importance, 51—57
ancient, 4 volume of (I960 and 1970), 121
and anthropology, 286-89 ways of viewing, 57—60
associations, 703—4 Advertising Age, 103, 339, 500, 533, 580
attitudes toward: 589
of business and public, 42 Advertising agency, 567-81
of businessmen, 45 a la carte, 579
overall American, 43 art director, 378
behavioral sciences in, 285—312 associations, 702—4
competitive, 82—85, 87, 94 boutique, 579
corrective, 680 for business advertising, 67 s

731
 732 Advertising agency (cont.) American Motors, 49
Index career opportunities in, 697-98 American Newspapers Publishers Asso¬
commission system, 576-77 ciation (ANPA), 576
compensation structure, 577-78 American Research Bureau (ARB), 152-53
competing accounts, 580 ADI, 158
consent decrees, 577 Arbitron, 155
current statistics on, 571-72 American Sheep Producers Council, 112,
full-service, 570 115
full-service house, 578—79 American Wood Council, 57, 69
history of, 13, 567-71 Amplitude Modulation, 172
house, 579 Anchor Post Products, 327
in-house, 579—80 Animation, 429
international operations, 581 Answer print, 442
layout men, 378 Anthropology, and advertising, 286—89
negotiated fee, 578 Appeal, 107-8
networks, 581 search for, 314-317
organization, 572-76 translating to total concept, 339
of record, 580 Appraising ads, 510-19
relationship to media services, 587 Appraising campaigns, 520-27
training courses in, 697-98 Area sampling, 321
Advertising appeal, 107-8, 314, 317 Areas of Dominant Influence (ADI), 158
Advertising brand manager, 594-95 Arm & Hammer, 345—46
Advertising Checking Bureau, 207 Armstrong Cork Company, 494
Advertising costs, 32-33 (See also Costs) Art work, commercial, 378
Advertising Council, 19, 72 Artist’s medium, 378, 379
Advertising department (See Manu¬ Associated Advertising Clubs of the
facturer’s advertising department; World, 15, 16
Retail advertising, advertising Association Films, 278
department in department store) Association of Industrial Advertisers
Advertising Review Council, 16 (AIA), 662, 663, 670, 674
Agency, advertising (See Advertising Association of National Advertisers
agency) (ANA), 16, 509, 591, 600, 685,
Agency networks, 581 687
Agency of record, 580 AT&T, 143, 289, 580
Agricultural Publishers Association Atlantic Monthly, 10, 219
(APA), 576 Attitude testing, 523—24
AIA Media Data Form, 662 Audi, 82, 83
Aided-recall tests, 513, 529 Audience radio report, 179
Alcohol Tax Unit, 683 Audience research, 149-56, 156, 158, 171
Allstate Insurance Company, 353 diary method, 153-54
Almaden wines, 368 mechanical recorder, 155
Alpo dog food, 167 telephone coincidental method, 153
Altman, Vos & Reichberg, 381, 402, Audimeter, Nielsen, 155
648-52 Audio, in TV commercials, 428
AM Radio, 161, 172-73, 182 Audit Bureau of Circulations (ABC), 16,
American Advertising Federation, 15-16, 204-5, 210, 227, 662, 668
686, 687 Auditing organizations, 16
American Association of Advertising Auditing reports, 668
Agencies (AAAA), 16, 32, 42, 109, Automobiles Manufacturers Association,
123, 198-99, 443, 467-68, 570, 278
574-75, 577 Automobiles:
American Broadcasting Company (See buyer profiles, 112-14
ABC network) early, 13
American Business Press (ABP), 576 Availabilities, 149
American Castleton china, 36 Avis, 68, 543
American Dairy Association, 57 Avon Products, 51, 56
American Dental Association, 37, 103-5 Ayer, N.W., & Son, 116, 389, 432-33,
American Druggist, 658 opp. 443, 568, 570
American Fruit Grower, 232
American Gas Association, 363 B
American Home Products, 56, 259
American Marketing Association, 111 Backman, Jules, 37
Baltimore and Ohio Railroad, 278 Budget:
Baltimore Sun, 117 advertising, 598
Band-Aid, 91, 539 approval of, 544
Bartering, 589 for department stores, 614—16
Bartan, Roger, 105, 594, 596, 600 of discount stores, 622
Basic bus, 266—61 mathematical models, 600
Batten, Barton, Durstine, & Osborne, of national advertisers, 598-602
147, 452, 527 residual fees, 437
Bauer, Raymond A., 42, 286, 295 selecting primary medium, 122—23
Bayton, James A., 297 of small advertiser, 122
Beatrice Foods Company, 453 synergistic effect, 123
Behavioral sciences, 285-312 and timing, 125—27
anthropology, 286-90 Bulk discounts:
case report, 307-12 in magazines, 227
defined, 285—86 in newspapers, 197
models of, 305-6 Bulletins, outdoor painted, 247-51
psychology, 296-300 Bulova, 370, 537
sociology, 290-96 Burch, Dean, 166
Bureau of Advertising, 196, 212
Bell, Martin, 292
Bureau of Consumer Protection, 680
Bell System, 353
Bus advertising (See Transit advertising)
Bellaire, Arthur, 434, 440
Business advertising, 659-75
Bench marks, 529
advertising agency for, 675
Benday process, 413-16
annual business show, 672
Bender, William H., 215-17
industrial, 664—75
Berelson, Bernard, 297, 344
publicity, 672
Best Foods, 259
Standard Industrial Classification Index
Better Beef Business, 232
Better Business Bureaus, 15-16, 31, (SIC), 669
trade papers, 658—63
686-87
Better Homes & Gardens, 223, 640 Business films, 277-79
Business Publications Audit of Circula¬
Betty Crocker, 459, 493, 558
tion (BPA), 662, 668
Bigelow carpets, 354
Business shows, 672
Binaca, 449
Business Week, 581, 674
Birds Eye, 341, 372, opp. 374
Bus-O-Rama, 265
Bisquick, 558—62
Black Panther Newspaper, 204 Buxton, Edward, 632
Buyer profile, 110—11
Blair, John, & Company, 187
Buying (See Space buying; Time buying)
Bleed pages, 221, 222
Buying habits, of consumers, 484
Blister card, 470
Bolla wines, 287
Book, Albert C., 429 c
Book club ads, 638
Book of Knowledge, 341, 345 Cable television, 162-64
Borden, Neil H., 49 AdTel, 526
in direct-response advertising, 656
Borden Company, 56
Boston Globe, 117 and magazines, 236
"Bounce-back” circulars, 638 and political pressure, 166
two-way communication, 164
Boutique agency, 579
Boyd, Harper, 105, 106 Cablecasting, 164, 325
Brain, Lord, 330 Cadillac, 100
Brand name: Calgon, 317
California Farmer, 232
defined, 459
logotype used in, 463 California Food News, 658
Brands, advertising, 35-37 California turkey growers, 540
Calkins, Earnest Elmo, 11, 15, 22, 569
Briggs, Richard, 254, 257,
British Association for the Advancement Calkins, & Holden, 569, 570
of Science, 330 Campaigns:
appraising, 520-27
Broadcast, 166
budget approval for, 544
Broadcast day, radio, 175
long-range institutional, 124
Broadcasting, 162, 164, 189, 293
presentation to sales force, 544
Brown, George H., 22
for new product, 532—62
Brown, Jordan, 222
 734 Campaigns (cont.) Coleman, Richard, 292
Index steps in, 545 Colgate toothpaste, 37, 122
for supermarkets, 623—24 Colley, Russell H., 509
Campbell’s Soup Company, 56, 92, 103, Color:
539, 679 in advertising, 374
Cardozo, Richard, 306 films, in TV commercials, 435
Careers, in advertising: four-color halftone plates, 414—15
in advertising agency, 697—98 full-color reproduction, 419
getting the first job, 694—99 halftone plates, 419
in retail advertising, 632, 694—99 in newspaper advertisements, 210, 214
Carey, Norman D., 429 Columbia Broadcasting System (See
Carrier air conditioners, 509 CBC)
Cash, Norman E., 674 Comics, 212
Cassettes, television, 166 Commercials:
Casting, for TV, 440, 441 integrated, 148
Catalog buying service, 638 radio, 445-54
Catalog merchandise stores, 626-27 categories of, 447—48
Catalogs, for industrial advertising, 672 elements of effective, 445-46
CATV (See Cable television) examples of, 449—52
Caxton, William, 6 making duplicates, 454
CBS network: musical, 447
beginnings, 17 prerecorded, 454
radio, 173, 190 production, 453—54
television, 142, 143, 144 timing, 446
Celanese, 542, 592 writing, 445—47
Century, 10 Yankelovich Report, 445
Certificate of Performance, 148—49 slice-of-life, 294
Certification marks, 468 television, 428—43
Chain department stores, 609, 621—22 animation, 429
Chain Store Age, 658 artists and, 435
Chainbreak, 145 audio in, 428
Chamberlin, Edward, 36-37 casting, 440, 441
Chase, Stuart, 25 composers, 441
Checking copies. 207 creating, 428
Cheskin, Louis, Associates, 324 editing, 442
Chevrolet, 40, 122 estimating costs of, 438—39
Chicago Tribune, 117, 212 filming, 441—42
Children, Incorporated, 73 films, 435
Chiquita bananas, 53 kinescope, 436
Chivas Regal whiskey, 344 length of, 140
Churchill, Randolph S., 677 limitations of, 140—41
Cincinnati Milling Machine Co., 275 live, 435-36
Circulation: making, 437—43
audits, 662 musicians, 441
interior transit advertising, 261 opticals, 436
magazines, 228 photoscripts, 431, 433, opp. 442,
outdoor advertising, ‘252 opp. 443, 456
trade papers, 658—662 preproduction meeting, 439—40
Circulation rate base, 227 producer of, 434, 437
Clairol, 93 production, 434-43, 629-31
Classified advertisements, newspapers, 6—7 production costs, 438-39, 440
Close-Up toothpaste, 317, 354 production studio, 437
Closing date, 225, 424-26 recall studies, 510
Closing time: rehearsals, 441—42
radio, 174 rough cuts, 442
television, 148 rushes, 442
Club Mediterranee, 303, 304 sales message, 428
Cluett, Peabody & Co., 59 script, 430, 438
Coca-Cola, 86, 122, 353, 459, 469, 494, sound track, 436
497, 538, 589 storyboard, 429, 432, 438
Coined words, in trademarks, 462 story line, 428
Cold type, 409 styles in, 428
Commercials (cont.) Coolidge, Calvin, 17
testimonial, 429 Cooperative advertising, 502—6, 619—21
TV commercials production de¬ department store, 619—21
partment, 573 legal aspects of, 682
types of structure, 428—29 newspapers, 505, 506
video, 428 Copy, 339-54
videotape, 435 action inspiring, 345
writing, 429, 434 amplification, 343
Commission, agency, 576—77 approach, 348—53
Community antenna television (CATV) emotional, 351—53
(See Cable television) factual, 348—51
Comparison testing, 511, 529 approval by legal department, 688
Compensation, agency, 578—79 direct-response, 638—40
Compensation, in media services, 587 headlines, 340, 357
Competition, 123, 329—30 industrial, 669—70
defined, 101—2 long-copy ad, 347
imperfect, 41 nature of, in selecting media, 123—24
matching on national scale, 124 origin of term, 339
perfect, 41 outdoor advertising, 257
Competitive advertising, 82—85, 87, 94 PAPA, 340
competitive product with new feautre, proof, 343—44
87-89 short-copy ad, 346
detail in pioneering stage, 87-89 slogans, 353-54
familiar products, 87—89 style, 348—52
Competitive enterprise, and advertising, subhead (subcaption), 342
24-25 trade paper, 662—63
Competitive stage, of new product, 536, Copy playback testing, 511
537, 538 Copyrighting:
Computer thinking, 128—29 advertisements, 691-92
Computers: music, 447
in direct-response advertising, 656 publications, 691
and interviewing, 325 Copy-testing of ads, 508 (See also
iteration, 128-29 Testing)
mathematical models, 527 Cosmopolitan, 11, 236
media planning, 127—28 Cost per GRP, 157
radio planning, 184—86 Cost per order (CPO), 647, 653, 655
typesetting, 407—9 Cost per thousand audience (CPM),
used to compile lists, 641, 643—44 formula for, 127
Con Edison, 71 Costs:
Conformity, and advertising, 39—40 of advertising, 32-36
Consent decrees, 577, 680 estimate, in TV, 438—39
Consumer: of outdoor advertising, 243
behavior, models of, 305—6 Coty, 40
buying habits of, 484 Council of Better Business Bureaus, 687
creative, 110—11 Coupons, 498, 508
deals, 501—2 cents-off, 501
directories, 280 cost per order, 647, 653
groups against deceptive advertising, 687 in mail-order copy, 640
life-styles, 300—304 in national advertising, 518-19, 529
packaging requirements of, 469-70 Coverage area:
passive, 111 radio, 177
protection against misleading adver¬ television, 156
tising, 677—92 Creative advertising, 680
questionnaires, case report, 331-35 Creative director, 573
research, 319-28 Creative strategy, 537—38
surveys, 526 Crescent, The, 628
Contests, 497—99 Crest toothpaste, 37, 103, 107, 373
Continuity, 124—25 Crisp, Richard D., 320
Controlled circulation, 658, 662 Criterion Advertising, Inc., 247
Controls, legal, on advertising, 677-92 Cronkite, Walter, 190
Convenience sample, 322 Cumes, 158
Cook Book Guild, 65 Cunningham, Scott M., 286
 736 Cuppa coffee, 246 defined, 634
Index Cut, in TV, 436 direct marketing, 634
magazines, 640
D mail-order advertising, 634
media, 640—41
Dailies, 442 newspapers, 641
Dairyman, The, 232 television, 641, 655
Dakota Farmer, 232 testing, 647-54
D’Arcy-MacManus-Internaco, Inc., 449 trends, 656
Davidson, William R., 614, 615 types of, 637-38
Day, Ralph A., 101 unique features of, 635
Day-after recall studies, 513 Discount stores, 622
De Beers diamonds, 302, 304 Discounts:
Dealer programs, 482-506 frequency, 147, 176
cents-off coupons, 501 in magazine advertising, 227-28
contests, 497-99 in newspaper advertising, 197
cooperative advertising, 502—6 Disney Productions, 277
forms of, 482-83 Displays:
point-of-purchase advertising, 483-92 how to get them used, 492
premiums, 492-96 ideas for, 490
sampling, 499-500 illuminated, 489
Deals, 501—2 jumble, 489
Del Monte, 359, 468 makers of, 492
Delayed telecast, 142 motion, 489
Delineator, 11 permanent merchandising, 489
Demby, Emanuel, 110—11, 665 point-of-purchase, 519
Demographic data, 109-15, 209, 230 Dissonance theory, 295
Department of the Army, opp. 442 Distribution, of product, 50, 120-22, 536
Department stores, 608—22 Dixie Cups, opp. 375, 539
Depression (1930’s), advertising in, 18-19 DKGinc., 450—51
Depth interview, 326 DMA, 158
Designated Marketing Areas (DMA), 158 Doody, Alton F., 614, 615
Dewar’s Scotch, 541 Doubleday & Co., 382-84, 648-49, 652
Diary method of research, 154, 323 Douglas Leigh, Inc., 251
Dichter, Ernest, 298, 326 Dow Chemical Company, 465
Differential, product, 52, 83, 534 Drive time, 176
"imaginary,” 29-31 Droste cocoa, 478
"trivial,” 26—29 Drug advertising, 32
Direct lithography, 410 du Pont (E.I.) de Nemours, 40, 59, 66,
Direct marketing, 634 318, opp. 443, 468, 484, 602
Direct selling house, 272 Duofold underwear, 344
Directional antennas, 172 Duplicate plates, 420-22
Direct-mail advertising, 120, 631—32, electrotypes, 420
641-45 mat, 421—22
copyrighting of publications, 691 stereotypes, 421—22
defined, 635 Duplo, 488
house lists, 641 Dutch Boy paint, 459
industrial, 670—72
list broker, 643—44 E
matching lists, 644
package, 644 Early Bird satellite, 165
planning, 644-45, 655 Early fringe time, 147
producing, 655 Easy-Off, 357
response-derived lists, 643 Ebony, 219, 231
scheduling, 645 Edlund, Mary, 698-99
tests, 653 Edlund, Sidney, 698—99
Direct-response advertising, 59, 65, 508, Ekco, 377
634-56 Eldridge, Clarence, 593, 598
arithmetic, 646—47 Electric transcription, radio, 454
cable television, 656 Electrolux, 56
copy, 638-40 Electromagnetic spectrum, l6l
copyrighting of publications, 691 Electrotypes, 420
Elgin National Industries, 265 Foley’s 617 737
Ellis, Lynn, 581 Food and Drug Administration (FDA), Index
Empirical method, 602 32, 479, 495, 501, 683
End-product advertising, 59, 66 Forbes, 54, 673
Esquire, 225, 230 Forced combination, newspaper, 197
Ethics, advertising, 43 Ford, Henry, 13, 102—3
Eureka vacuum cleaner, 30 Ford Motor Company, 13, 40, 89, 103
Evans, Jacob A., 655 Formula for Effective Relief, 680
Evinrude, 342 Fortune, 219, 673
Expenditures, advertising, 19, 54-56, 119 Foster and Kleiser, 246, 249
comparison 1960—1970, 121 Foundry type, 404
and the consumer, 32-33 Four-color reproduction, 419, opp. 420
major media, 131 Frank, Ronald E., 102
newspaper, 214 "Free,” legal aspects of term, 495—96,
as percent of sales, 55 679
radio, 19, 171 Free giveaway, 492
television, 19, 139 , French Line, 116—17, 390—92
Experimental sales-test patterns, 524 Frequency, 124—25, 157
Exterior advertising (See Transit Frequency, radio, 183
advertising, exterior) Frequency discounts, 147, 176, 227
Frequency Modulation, 172, 181, 182
Friedlich, Fearon & Strohmeier, 238
F
Frigidaire, 28, 29, 93, 466, 538
Fact sheet, 453, 617 Fringe time, 147
Fair Packaging and Labeling Act, 479 Frosted Food Field, 668
False advertising, 31, 677—681 Fulfillment firms, 496, 499
Family Circle, 471, 647
Full position, newspaper, 197
Family Week, 212
Fuller & Smith & Ross, Inc., 316
Famous-Barr, 610, 612, 614, 615, 618, 689 Full-service house agency, 578-79
Fur Products Labeling Act, 683
Farberware, 369
Farm Journal, 232 Furst, Sidney, 52, 90
Farm magazines, 232—36
Federal Communications Commission G
(FCC), 17, 160, 161, 164, 173,
182, 588 Galbraith, John Kenneth, 36, 38
Federal Communications Commission Gallagher Report, The, 534, 675
Report, 141 Gallup, George H., 322, 571
Federal Food, Drug and Cosmetic Act, Gallup Organization, 42
18, 683 Gatefolds, 223—25
Federal Trade Commission (FTC), 18, 32, Gateway National Bank, 274
37, 52, 295, 479, 495, 499, 502, Gaw, Walter A., 275
539, 599, 678-81, 688 General Electric, 27, 38, 50, 56, 84, 365
Federal Trade Commission Act, 14-15, General Foods, 26-27, 56, 236, 364, 372,
479—80, 502, 677-81 opp. 374, 467, 477, 478, 525,
Feldman, Wallace, 306 597, 599
Ferrari, 83 General Mills, 23, 52, 459, 494, 558-62,
Festinger, Leon, 296 688
Fiber Industries, Inc., 542 General Tires, 366-67
Field and Stream, 219 Gerber, Dan, 28
Filming, TV commercials, 441—42 Gerber Products, 28
Films, 277-80 Getty Oil Company, 450-51
business, 277, 279 Geyer, Morey, Ballard, Inc., 517
sponsored, 277-80 Gilbert Advertising Agency, 241
for television commercials, 435 Gillette, 78, 91, 370, 468
theatrical, 277 Godey’s Lady’s Book, 10
Firestone Tire & Rubber Co., 17, 278, Gold Band Rock Wool, 345
343-44 Good Housekeeping, 219, 236, 640, 685
Fish, James S., 558 Good Seasons Salad Dressing, 533
Flammable Fabrics Act, 683 B.F. Goodrich Company, 89-90
Fle-ischmann’s Yeast, 294 Goodyear Tire & Rubber, 28—29, 296,
Flights, 159, 171 348-49
FM radio, 172, 181, 182 Gourmet, 117
 738 Greenshaw & Rush, Inc., 123 Hunt-Wesson Foods, 103, 534, 541
Index Grey Advertising Agency, 304, 587-88 Hymes, David, 404, 411
Greyhound Bus, 318, 319
Greyser, Stephen A., 42, 295, 300, 336, I
521, 523
Griswold, Edgar, 534 ID, in TV, 145
Grocery Manufacturers Association, 601 Illinois Beverages Journal, 658
Grocery Mfr., 486, 487-89 "Imaginary differential,” 29-31
Gross rating point (GRP), 156-58, 186 Imperfect competition, 41
Grotte Advertising Co., 271 Impulse buying, 484
Ground waves, 172 Incentive Marketing, 494, 496, 499
Gruber, Alin, 327 Industrial advertising, 59, 66, 658, 664-68
Guarantees, in advertising, 679 advertising agency for, 675
Gulf Coast Cattleman, 232 annual business shows, 672
Gulf Oil, 592 catalogs, 672
copy, 669-70
H corporate, 673-74
defined, 664
Haag Drug Company, 521 direct-mail, 670-72
Haggman, Richard S., 546 directories, 672
Haire, Mason, 300 effectiveness of, 665-68
Halftone finishes, 418-22 publications, 668-69
color halftone plates, 419 publicity, 672
duplicate plates, 420-22 Standard Industrial Classification Index
full-color reproduction, 419 (SIC), 669, 671
silhouette halftone, 418, 419 uniqueness of, 664-65
square halftone, 418, 419 use of case histories, 669—70
Halftone plates, 416-18 Industrial Maintenance and Plant
Halle Bros., 628 Operation, 668
Hallmark cards, 143 Industrial Marketing, 668
Hamburger Helper, 104 Industrial publications, 668
Hanes T Shirts, 340 Industrial Revolution, 7
Hardware Retailer, 658 Influential, 294—95
Harper’s Monthly, 10, 11 Information services, 704—5
Harris, Louis, 487 In-house agency, 579-80
Harvard Business Review, 42 Innovators, 293—94
Hayes, Ira, 674 Insertion order:
Headlines, 340-42, 357 magazines, 225, 227
"Heavy users,’’ 110, 111 newspapers, 201
Hechtlinger, Adelaide, 14 Inserts:
Hershey Foods, 534 magazines, 225
Hertz, 360, 543 newspapers, 213
Hidden-offer testing, 518, 529 Institute of Outdoor Advertising, 249
Highway Beautification Act, 257—58 Institutional advertising, 57, 70-71
Hills Brothers, 623—26 department store, 609, 612, 613
Hinkle, Charles L., 501—2 Intaglio printing, 411
Hobbs, Whit, 105 Integrated commercials, 148
Hofsoos, Emil, 699—70 Interior advertising (See Transit
Holden, Ralph, 22 advertising, interior)
Holland House cocktails, 491 Intermedia planning, 122-23
Home Furnishings, 658 Interviewing:
Homelite, 85 depth, 326
Hoover Company, 56, 538 direct, 525
Horizontal industrial publications, 668 mail, 322-23
Hormel, 473, 474-75 panel, 323
Hotten, John Camden, 22 personal, 323
House agency, 578-79 readership tests, 511-12
House & Garden, 221
telephone, 323
Inventions, 8
House lists, in direct-mail advertising, 641 IP rate, 147
House marks, 467—68 Irwin, John, 674 '
Household Finance Company, 290 Iteration, 128-29
 Legal releases, 380, 690 739
J Index
Lestoil, 536
Janitor in a Drum, 345 Letterpress printing, 410
Jarman Shoes, 40 Lettershop, 643, 645
Jefferson, Benjamin, 201 Lever Brothers, 688
Jingles, 447 Levy, Sidney, 105, 106
Jobber Topics, 658 Lewis Kleid Company, 643
John Deere snow blower, 351 Libby’s, 539
Johnson, J.R., 239 Life, 232, 233, 691
Johnson & Johnson, 91, 108 Life-styles, 300—304
Johnson (S.C.) Co., 105, 106 and changes in packaging, 470—71
Jones, Robert W., 22 Liggett & Myers, 439
Judgment sample, 322 Lincoln Continental, 49
Jump clock, 249 Line plates, 413—16
Junior units, 223 Benday process, 413—16
color, 416
K Linotype, 405—6
Lippincott & Margulies, Inc., 472, 473,
"Karsh campaign,’’ 546—47 474-75
Katz, Elihu, 294 Lipton, 240
Kava, 105 Liquid Gold, 317
Kellogg Company, 50, 62—63 Liquor advertising, legal controls on, 683
Kelvinator, 345, 516—17 List Broker, 643—44
Kikkoman, 108 Lists, direct-mail:
Killian Company, 628 house, 641
Kimberly-Clark Corporation, 34, 46—47 industrial, 670—72
Kitchen Aid, 345 on magnetic tape, 644
Kleenex, 34, 46-47, 87, 107, 277, 340, matching, 644
467, 473 outside, 642
KLM Airlines, 318 rental of, 642, 643
Kodak, 49, 84, 362, 542 response-derived, 643
Kohlos, Jay M., 293 Lithography, 410-11
Kotler, Philip, 25, 305, 658 Live commercials:
Kraft, 50, 104, 239, 471 radio, 453-54
Krakauer, Edward M., 534 television, 435—36
Kresge, 622 Local advertising:
Kress, George J., 519 newspapers, 196
Kuehn, Alfred A., 101, 126, 127 radio, 174
television, 141, 607
See also Retail advertising
L
Logotype:
brand names, 463
Labeling, 473, 683
Labiner, Ted, 240 musical, 447, 453
Ladies’ Home Journal, 11, 13, 221, 223 trademarks, 463
Lajmar Dean, 250 Look, 233
Los Angeles Times, 117, 212
Lamb, market for, 115
Landers, Bob, 447 Lotteries, 679
Larwood, Jacob, 22 Luzianne coffee, 105
Late fringe time, 147
Layouts, 368—91 M
artist’s medium, 378—79
composing the elements, 371—73 McCann-Erickson, 254
criteria for, 380 McClure’s, 11
layout man as editor, 369 McKie, James W., 25
samples of, 382—83, 386, 390—91 Maclean’s toothpaste, 317
for small advertisements, 375 McNiven, Malcolm A., 602
types of, 377—78 Macy’s, 611
Lazarsfeld, Paul, 294 Mademoiselle, 230
Lazer, William, 300 Magazine Advertising Bureau, 237
Lea & Perrins, 497, 538 Magazine Publishers Association, 229
Lee, Alfred McClung, 22 Magazines, 219—41
Lee, James Melvin, 567 advantages of, 219-21
 740 Magazines (cont.) profile, 108—15
Index cards, 225 segmentation, 102-8, 120
circulation, 228 creating products for, 103
color reproduction, 219 and diversity, 103
corporate industrial advertising in, 673 and mass production, 102—3
criteria for picking, 236 within a market, 107
dates, 225 shift of stake within, 87
direct-response advertising in, 640 Marketing:
discounts, 226—27 associations, 703—4
elements of, 221-25 data, newspaper, 208, 209
farm, 232-33 goals, vs. advertising goals, 509-10
gatefolds, 223—25 information sources, 112-15
geographic/demographic editions, labeling, 473
220-21 mix, 49-51, 500
history of, 10-11 services, 703—4
inserts, detachable, 225 strategy, 116-17
Junior units, 223 target, 99-117, 536
limitations of, 221 Marketing Science Institute, 510
merchandising services, 229—32 Markets:
national media plan, 122 determining best locations of, 108
ordering space, 225-30 newspaper, in U.S., 192
position of ads in, 224, 640 television, 158
rates, 225—27 Mars, Inc., 679
readership tests, 511—13 Martineau, Pierre, 292
scheduling dates, 225 Mass production:
self-regulation by, 685 and advertising costs, 33
short rate, 226—27 beginnings, 13
sizes, 221-23 and market segmentation, 102—3
space designations, 223 Massy, William F. M., 102
special editions, 221 Master print, 442
split-run editions, 221 Master tape, 454
split-run tests, 647 Matched-set comparison testing, 522-23,
Starch Reports, 511, 512 529
supplements in newspapers, 210-12 Matching lists, in direct-mail advertising,
trends, 233-36 644
ways of using space, 224 Mathematical models, 527, 601
Magnavox, 51 Mats (matrices), 407, 421-22
Mail interviewing, 322—23 Maxiline, 202
Mailing lists, industrial, 671—72 Maxwell House, 52
Mail-order advertising, 59, 508 May Co., 620
defined, 634 Maybelline, 487
testing ads, 516 Mayer, Martin, 525
Majority fallacy, 101 Mazda, 79
Make-goods, 149, 207 Mazola, 263
Mallory batteries, 53 Mechanical Contractor, 668
Management decisions, 91—93 Mechanical recorder, 155
Manufacturer’s advertising department, Mechanicals, 378
591-602 Media:
advertising brand manager, 594—95 advertising, 119—22
advertising manager, 593—94 associations, 702-3
budget, 598-603 chief patterns for using, 125-27
central advertising control, 592—94 competition in, 123
corporate, 597 computers used in, 127, 128
decentralized advertising control, 596 cost comparison of, 127
mathematical models, 600—601 determining best combinations of, 128
organization of, 591-92 director, in advertising agency, 573, 576
product brand manager, 596 direct-response, 640—41
Manville, Richard, Research, Inc., 478 estimate, beginning, 568
Margulies, Walter P., 470, 476-77 mix, in retail advertising, 627—32
Market: package, 568
defined, 100-101 plan:
majority fallacy, 101 basic local, 120
 basic national, 122 Middle South Utilities, 290
basic regional, 120 Military Book Club, 382—84
full-circulation national magazines, Miller and Rhodes, 628
122 Miller’s High Life beer, 318
geographical, 122 Milline rate, 201—2
merchandising, 127 Million Market Newspapers, Inc., 195
national network radio, 122 Milwaukee Journal, 108
national network television, 122 Minard, Guy M., 532—33
national newspaper, 122 Mini-laser television, 162
national outdoor, 122 Miniline, 202
national syndicated Sunday supple¬ Miracle White detergent, 453
ment, 122 Mrs. Paul’s, 262
national transit, 122 Mitchel, F. Kent, 477—78
and syndicate research services, 153 Modern Packaging, 480
planning, 112, 119 Modern Packaging Encyclopedia, 470
computers in, 128 Modern Talking Picture Service, Inc.,
iteration, 128—29 279-80
schedules, and ratings,'156 Money, 236
primary, 122—23 Monopolies:
problem, 130—33 and advertising, 36-38
pulsation, 126—27 and the FTC, 37
ranking, 518 Monotype, 406—7
schedules, 156 Monsanto, 580
seasonal program, 125 Montgomery Ward, 621
secondary, 123 Moore Special Tool Co., 67
selecting, for new product, 543 Moran, William T., 30, 31
self-regulation by, 685 Morison, Samuel Eliot, 20, 22, 23
services, 583—89 Mortimer, Charles W., 599—600
background, 583—84 Morton’s salt, 534
barter, 588 Moss, Frank E., 60
compensation, 587 Motivation, 297—99
functions of, 586 Motivation research, 326
independent, 579 Motorola, 329—30
relationship to advertising agency, Moto-Saw, 375
587 Moyer, M.S., 306
trade-out syndicated shows, 589 Ms, 23 6
working with, 587—89 Muhammed Speaks, 204
steady program, 125—26 Munsey’s, 11
strategy, 119—35 Murdock, George Peter, 286
defined, 119 Music:
role of product dealer in, 127 copyrighting, 447
timing, 125—27 radio commercial, 447, 452
supplementary, 270—81
advertising specialties, 270—76 N
films, 276—80
miscellaneous, 281 Nabisco, 56, 278, 468
programs, 280—81 National advertisers:
Yellow Pages, 280 contrasted to retail advertisers, 607
tie-ins, 127 leaders in 1890’s, 12
Medical advertising, control of, 13-14 top 50 in 1970, 136-37
Merchandise trays, racks, cases, 489 National advertising, 58, 62
Merchandising bus, 262 appraising, 509
Merchandising packages, 543 cooperative, 502—6
Merchandising plans, 482 origin of, 11
in media plan, 127 National Advertising Division of the
Merchandising services: Council of Better Business
magazines, 230—32 Bureaus, 687
newspapers, 208 National Advertising Review Board,
Merchandising tests, 487-89 687-88
Metro, 212 National Advertising Review Council, 31,
Metropolitan Life Insurance Co., 70 687-88
Michigan Bulb Company, 636 National Association of Broadcasters
 742 National Association (cont.) New York Life Insurance Company, 361
Index (NAB), 685 New York Times, 117, 212, 580
National Business Lists, 670 New York Voice, 204
National Cash Register Company, 547, New Yorker, The, 117, 267, 685
673-74 Newsletters, 6
National Dairy Council, 278 Newspapers, 120, 122, 193-217
National Geographic, 220, 236 A, B, C schedules, 205—6
National Industrial Conference Board, 527 advertising in, 192—217
National Oil Fuel Institute, 315, 316, 341 buying space, 197—201
National Outdoor Advertising Bureau case report, 215—17
(NOAB), 254 color advertising, 210
National radio networks, 173—74 columns, 196
NBC network: cooperative, 505
beginnings, 17 expenditures in, 214
radio, 173 limitations, 194
television, 142 local vs. national rates, 196
Needham, Harper & Steers, Inc., 239 money spent on, 607
Network radio: origin of, 6—7
national media plan, 120 in the U.S., 9—10
programming, national, 174 black, 204
regional, 120 checking copies, 207
Network television: circulation, 192—93, 204
antitrust suit against, 165 comics, 212
commercial time on, 141—44 direct-response advertising, 641
national (ABC, CBS, NBC), 142 display advertising, 196
national media plan, 122 free, 214
participations, 144 how to select, 208, 210
programming: loose inserts, 213, 627
number of homes reached, 139 "make-goods,” 207
planning, 159 makeup restrictions, 202—4
regional, 120 marketing data, 208, 209
single sponsorship, 142—44 measuring space, 196-97
Networks, agency, 581 merchandising service, 208
New England Dairyman, 232 number of, in U.S., 192
New England Hardware Journal, 658 page positions, 203
New products: preprinted inserts, 213
advertising, 52, 78—82 rates, 197, 202, 608
schedule, 537, 544 recognition tests, 511
budget, 599 in retail advertising, 627
competitive stage, 536, 537, 538 self-regulation by, 685
complete campaign for, 532—62 sizes, 202—4
case report, 546-57 space contract, 201
creating advertisements and commer¬ special sales representatives, 205
cials for, 543 split runs, 212-13
development, 534 split-run tests, 647
distribution, 536 Standard Form Rate Card, 198
early buyers of, 292-93 syndicated supplements, 210-12
how to position, 533-34 tear sheets, 207
local media plans for, 120 trends, 213
and market segmentation, 102—3 want ads, 6-7
outline of steps for national campaign, weekly, 213-14
545-46 Newsweek, 522, 673
packaging, 535 Nielsen (A.C.) Company, 140, 150, 151,
and passive consumers, 111 525, 601
pioneering stage, 535, 536, 537 Audimeter, 155
pricing, 535 DMA, 158
selecting advertising media for, 543 Nielsen Station Index (NSI), 153
selling strategies, 539—45 TV Diary, 154
target market 536 TV Local market reports, 153
trademark, 535 Nonprobability samples, 322
New York Amsterdam News, 204 North Star Blankets, 344
New York Herald-Tribune, 13 Northwestern Mutual Life Insurance
 Company, 328-29, 546—57 restyling, 474—75
Noxzema, 107 testing design, 478—79
Numa programming, 184-86 waste-disposal problem, 480
Numa System, 183 when to change design, 477—78
Nussbaum, John S., 116, 389 Painted bulletins, in outdoor advertising,
247-51, 254, 255
Paired comparison testing, 514, 529
O
Palmer, Volney B., 567—68
Pan American World Airways, 318, 342
Oaks, Jim, 674
Oelman, Robert, 547, 673, 674 Pan-American Coffee Bureau, 25
Offset lithography, 410—11, 417, 422 Panel, 323
O’Gara, James V., 167 Paneth, Erwin, 22
Ogilvy, David, 698 PAPA, 340
Ogilvy & Mather, 318, 533 Paper, 422-24
Ohio Farmer, 232 Parade, 211, 212
Old Charter Bourbon, 254 Participations:
Old Town Canoes, 375 radio, 176
Omega Flour, 123 television, 144, 148
Omnibus advertisement, 506 Pass-along circulation, 227
Open Pit barbecue sauce, 295 Patent-medicine advertising, 10-11
Opticals, television 436 Paterson, D. G., 399
Order card, in mail-order copy, 640 Pattern plate, 421
Oscar Meyer Company, 38 Peckham, J. O., 600—601
Ostlund, Lyman, C., 294 Penney, J.C., Co., 621, 629
Outboard book, 375 Pepsi-Cola, 291, 452
Outdoor advertising, 4, 120, 122, 243—58 Pepto-Bismol, 353
advantages, 243 Percentage-of-sales method, 599
buying, 252—54 Perfect competition, 41
circulation, 252 Performance risk, 295
comparison of standardized, 255 Periodical Publishers Association (PPA),
copy, 257 576
defined, 243 Periodicals, advertising, 700-702
features, 243 Personal interviewing, 323
forms, 244—52 Peugeot, 284
Highway Beautification Act, 257—58 Phifer Wire Products, Inc., 278
inspecting, 254 Philadelphia Cream Cheese, 104
limitations of, 244 Philadelphia Inquirer, 117, 212
painted bulletins, 247—51 Phoenix Mutual Life Insurance Co., 341
plant operators, 244 Photocomposition, 407—9
posters, 245—47 Photoengraving, 412-18
rates, 253 halftone plates, 416—18
riding a showing, 254 line plates, 413—16
selecting sings, 254—57 Benday process, 413-16
shopping-center panels, 252 four-color halftone, 415-16
spectaculars, 251 line color, 416
traffic-flow map, 256 Photoscripts, 431, 433, opp. 442, opp.
trends, 258 443, 443, 556
and zoning laws, 244, 258 Piggybacking, 148
Outdoor Advertising Association of Pillsbury Company, 589
Louisiana, 256 Pinto, 49
Overholser, Charles, 328 Pioneering advertising, 78—82, 89—90, 107
advantages in, 89-90
P of new products, 535, 536, 537
new stage of, 90—92, 96
Pacific Gas & Electric Co., 342 Piper Aircraft Corp., 238, 343
Package rate, television, 147-48 Pittel, George, 623, 626
Packaging, 469—80 Plan board, in advertising agency, 576
basic requirements, 469—70 Plan rate, television, 147
designing new, 473—76 Plant, Alfred L., 695
-ideas, 470—72 Plant operators, 244, 252
legal aspects of, 479—80 Playback testing, 513—14
restraints on, 480 Playbill, 281
 744 Playboy, 219, 233, 236, 647 sampling, 499—500
Index Playtex, 51 testing, 120
Pledge, 105, 106 variations, 103—7
Plumb Tools, 375 Product brand manager, 596
Point-of-purchase advertising, 483-92 Production, print, 394—426
displays, 485-92, 519 department in agency, 573
Polaroid, 49, 342, 349, 351, 376 halftone finishes, 418—22
Pomerance, Eugene, 124, 125 major processes, 409-12
Popular Mechanics, 219 major typesetting methods, 403-9
Population, 8, 20, 25 offset plates, 422
Porteous Mitchell & Braun, 629 paper, 422-24
Positioning: photoengraving, 412-18
case report, 116—17 planning the work, 424—26
of new product, 106-8, 533 schedule, 425—26
Posters: typography, 394-403
in outdoor advertising, 245—47, 255 Production, radio, 453-54
in transit advertising, 267—68 Production, television, 434—37, 440,
Post-testing, of ads, 508 441-42, 443
Poultry Press, 232 Production costs:
Preemptible rate, television, 147—48 vs. air time, 631
Preferred-position rate, newspaper, 197 effect of advertising on, 33
Premium Advertising Association, 495 Production schedule, 424—26
Premiums, 492—96 Production studio, 437
Presbrey, Frank, 6, 12, 22, 568 Professional advertising, 58, 658
Preselected sampling, 153 Programs, advertising on, 280-81
Pressing, radio, 454 Progressive Grocer, 484
Pretesting, of ads, 508 Projective study, 326
Pricing: Promotional plans:
competition, between advertisers, 38 cents-off coupons, 501
of products, 50, 53, 535 contests, 497—99
Primary circulation, 227 deals, 501—2
Prime time: sampling, 499-500
radio (See Drive time) Promotions, 482
television, 147 Provident Loan Society, 263
Printer’s Ink, 16, 684 Psychographic characteristics, 110—11
Printer’s Ink Model Statute, 16 Psychology, and advertising, 295—305
Printing processes, 409-12 Psychology Today, 236
Probability samples, 321 Psychosocial risk, 295
Procter & Gamble, 27, 37, 50, 99, 259, Public domain, 447
596, 598 Publications, industrial, 668
Proctor-Silex Corporation, 34-35, 38 Publicity, business, 672
Producer: Public-service advertising, 60, 72, 73
radio, 454 Puck, 212
television, 434, 437 Pulsation, 126—27
Product: Pulse, The, 153
and brand policy, 50 Pure Food and Drug Act, 13—14
changing styles, 100 Purex, 690
defined, 99—100 Puritan Shirts, 470
differential, 52—53
displaying, 485-92 Q
distribution, 50, 120-22, 536
media plans, basic, 120—22 Quaker Oats, 11, 468
establishing distinctive image, 318 Quantity discounts, newspaper, 197
improvements, 46—47 Questionnaires, 320, 325, 326
life cycle, stages in, 77-93 Quota sample, 321
new (See New Products) QT tanning lotion, 108
overall market, 108
packaging, 469-80 R
pricing, 50, 53, 535
protection, 149 Radio:
repositioning of, 107-8 advantages of, 169—71
research on users, 112 advertising on, 169—91
Radio (cont.) for outside bus advertising, 266—67
expenditures, 19, 171 radio, 175, 176, 181
origin of, 18 television, 145
in regional media plan, 120 Rates:
structure of, 173 magazines, 225—27
AM, 172-73, 182 newspapers, 197—202, 608
announcer, live, 454 radio, 176—78
audience research, 171, 179 television, 145—48
barter, 588 Ratings:
broadcast day, 175 and planning schedules, 156
commercials, 445—54 television, 156
corporate industrial advertising, 674 See also Audience rating services
drive time, 176 RCA, 50, 78, 472
FM, 172, 171-82, 188 Reach, of media, 124—25
gross rating points (GRP’s), 186 newspapers, 204
history of, 17—18 radio, 182—83
limitations of, 171 television, 157
local, 174 See also Retail advertising
local advertising, 628 Reader’s Digest, 42, 219, 223, 230, 236,
network programming, 174 524, 685
networks, 173—74 Readership tests, 511—12, 529
Numa programming, 184-86 Realites, 117
number of sets in U.S., 169 Rebating, 578
production, 453—54 Recall studies, 510
rates, 176—78 Recognition tests, 510
reach, 182—83 Record-club ads, 638
recording, 454 Record Club of America, 650-51
retail advertising, 628 Recording studio, radio, 454
self-regulation, 685 Reece, Bonnie B., 42
simulcasts, 182 Reeves, Rosser, 521
spot, 174 Reference books, advertising, 704
station programming, 180-81 Regional media plan, 120
stations (AM), four classes of, 173 Regional network radio, 120
structure, 175 Regional network television, 120
tape, 454 Regional radio networks, 174
time: Release, legal, 380, 690
classifications, 175—76 Religious publications, early, 10
drive, 176 Remington, 78, 88
frequency discounts, 176 Renault, 509
how sold, 176 Repositioning, case report, 116-17
participations, 176 Research, advertising, 320—28
planning and buying, 187-88 director, in advertising agency, 576
preemptible vs. nonpreemptible, 176 guidelines, 527—29
run-of-schedule, 176 methods:
special features, 176 comparison tests, 511, 529
Standard Billing Month, 180 hidden-offer tests, 529
Standing Billing Week, 180 matched-set comparison tests, 529
Total Auidence Plans, 176, 177 mathematical models, 527
weekly package plans, 176 paired comparison tests, 529
transcription network, 174 physiological measures, 527
trends, 188 readership tests, 511—12, 529
Radio Advertising Bureau, 182-83 store sales tests, 529
Radio Broadcast Magazine, 17 telephone, 513
Radio Market Area (RMA), 186 tracking measures, 526—27
Ragu, 295 trend-line studies, 529
Ralston Purina Company, 103, 533, 534 motivation, 326
Ramond, Charles, 524 services, syndicated media, 705
Fvandom samples, 321 structured, 320—26
Raphael, Harold J., 479 unstructured, 326—28
Rate cards: Residual fees, 437
magazines, 225 Response-derived list, 643
newspapers, 198—201 Retail advertising, 58, 65, 607-32
 746 ad runs, 619 Satellite television, 165
Index advertising department in department Saturday Evening Post, 18, 223, 570
store, 613—14 Saturday Review, 117, 643
advertising schedule, 616-19 Scab, McCabe, Sloves, Inc., 385
career opportunities, 632 Scandinavian Airlines, 215—17
catalog merchandise stores, 626-27 Scatter plan, 144
chain department stores, 621—22 Schaefer beer, 318
cooperative, 619—21 Schedules:
differences between national advertising direct-mail advertising, 645
and, 607-8 magazines, 225
direct-mail, 631—32 newspapers (A, B, C), 205-6
discount stores, 622 See also Timing
importance of television station, 630-31 Schlitz beer, 318
media mix, 627—32 Schwab, Victor O., 342
in newspapers, 627 Scope mouthwash, 353
on radio, 628 Scotch tape, 340
specialty shops, 626 Scott Paper Company, 502, 514-15, 539
supermarkets, 622—26 Screens, 417-18, 423
on television, 629—31 Scripts, TV, 430-33
production, 443 Sealed Power piston rings, 342
traditional department store, 608-21 Sealtest, 432-33
Retail stores, classes of, 608 Sears, Roebuck, 350, 621, 629, 631-32
Retentive advertising, 86-87, 90, 92-93, Seasonal program, 125
538 Securities and Exchange Commission, 684
Revlon, 56 Self-liquidator, 492
Reynolds Metals Co., 90-91, 263, 340 Self-service shopping, 53
Rhame, John F., 580 Selling:
Riding a showing, 254 costs, effect of advertising on, 33
Rike’s, 629 problems, 539—45
RMA, 186 strategy, of new product, 539-45
Robinson, H. Copland, 439 Service marks, 468
Robinson, Patrick J., 510 Services, advertising, 57, 68
Robinson-Patman Act, 18, 502, 682 Sets-in-use, 156
Rockefeller, John D., 15 Settel, Irving, 17, 22, 170
Rogers, Everett, 293 Seventeen, 219
Ronson, 93 Shake ’n Bake, 534
Roosevelt, Franklin D., 18, 19 Share of audience, 156
Ross, Wallace A., 447 Share-of-market method, 600—601
Rotary plans, 250—51 Sharwen, Fred Albert, 22
Roth, Mel, 241 Shell Oil, 592
Roth, Paul M., 156 Sherman, Milton, 52, 90
Rotogravure printing, 411-12 Shopping habits, of consumers, 484
Rough cuts, 442 Short, Carl J., 189
Roughs, 377 Short rate:
Rowell, George P., 568 magazines, 227-28
Run-of-paper position, 197, 210 newspapers, 202
Run-of-schedule rate, 148 Showings:
Run-of-station rate, 176 poster, 245-47
Rush, Holton C., 123 in transit advertising, 262, 265-66, 268
Rushes, 442 SIC, 669
Ryan, Gordon, 23 Signs, 489
Silhouette halftone, 418, 419
S Silkscreen printing, 412
Simmons Reports, 112, 153
Saab, 82 Simoniz, 661
Sales, as measure of advertising, 510 Simulcasts, 182
Salesmen, 51, 509 Singer, Jules B., 694-95
Sales-promotion plans, 482 Singer Company, 90, 91, 94-97, 430-31
Salton Hotray, 352 Single sponsorship, 142—44
Sampling, 320-28, 499-500 Siquis, 6
Sampson, Henry, 22 Sissors, Jack Z., 100
Sanka coffee, 477 Sky waves, 172
Slice-of-life commercials, 294 Standards, in advertising, 43 747
Sloane, Leonard, 56 Starch, Daniel, 511—13 Index
Slogans, 353-54 Starch 1969 Annual Media Study of
Slusher, Richard, 629 Primary Audiences, 213
Small-car buyers, 112—14 Starch Reports, 511, 512, 571
Smith-Corona, 540 Starr, Martin Kenneth, 31
Social classes, 290—93 State radio networks, 174
Social Research, Inc., 307 Station and platform posters, 267—68
Sociology, and advertising, 56—57, 290-96 Station programming radio, 180—81
Sodaburst, 336—37 Station representatives, 149
Solarcaine, 340, 660 Steady program, 125-26
Sony, 80—81 Steiner, Gary A., 297, 344
Space buying: Steinway, 358
in magazines, 225—30 Stereotypes (stereos), 421—22
in newspapers, 196—201, 212 Stocker, James D., 502
in outdoor advertising, 252—54 Stocking, George W., 41
in transit advertising, 262—64, 265—67 Store sales testing, 525, 529
Space contract, 201, 225 Story line, 428
Space salesmen, 567—68 Storyboard, 429, 432, 438
Special features, 148 Stratified sample, 321
Special newspaper representatives, 205 Stromberg Carlson, 51
Specialty Advertising Association, 272, Structured research, 320—26
273, 274 Study on Consumer Judgment of
Specialty advertising counsellor, 272 Advertising, 31—32
Specialty shops, 626 Subway advertising (See Transit
Spectaculars, in outdoor advertising, 251, advertising)
255 Supermarket, 658
Split runs, 212, 221 Supermarketing, 28
Split-run tests, 508, 647 Supermarkets, 20, 622—24
Spode china, 36 Supplements, syndicated, 210—12
Sports Illustrated, 219, 236, 546 Surveys, special, made by individual
Spot, two meanings, 145 media, 112—15
Spot radio, 120, 174 Suzuki, 351, 353
Spot television, 120, 141, 145, 167 Swanson Frozen Foods, 103
Spot time: Sweepstakes, 679
buying, 145—47 Sweet ’N Low, 294—95
rates, 145 Syndicate research services, 153, 705
Spot-buying guide, 152 Syndicated services, 112
Square halftone, 418, 419 Syndicated shows, trade-out, 589
SRDS (See Standard Rate & Data Syndicated supplements, 210-12
Service) Synergistic effect, 123
SSC and B, Inc., 240
Stages of advertising, 77—78 T
compared, 90
competitive, 82—85, 87, 95 Take One, 262
different, in different markets, 87 Tape, radio, 454
pioneering, 78—82, 89—92, 94 Tarbell, Ida M., 22
retentive, 86—87, 90 Target marketing, 99—117, 536
shift of, in one market, 87 defined, 100
Standard Advertising Register, 462, 463 Task method of budget making, 599
Standard Billing Month, 147, 180 Taste, public, 25—26
Standard Billing Week, 147, 180 Tasters Choice, 83
Standard Form Rate Card, 198—99 Teflon, 59, 66, opp. 443, 468, 602
Standard Industrial Classification Index Telephone coincidental method, 153
(SIC), 669, 671 Telephone interviewing, 323
Standard of living, 43 TelePrompTer Cable TV, 163
Standard Oil Company, 15 Television:
Standard Oil of N.J., 674 advertising in, 139-66
Standard of quality, 53 advantages of, 139—40
Standard Rate & Data Service (SRDS), expenditures for, 19, 139
146, 174, 178, 198, 200, 228, 259, in regional media plan, 120
261, 264, 266, 269, 668 affiliated stations, 142
 748 Television (cont.) Television Bureau of Advertising Index,
Index audience research (See Audience rating 139
services) Testimonials, 293, 294, 429
barter time, 588—89 Testing:
cassettes, 166 aided-recall, 513, 529
Certificate of Performance, 148-49 attitude, 523—24
children’s programs, advertising on, comparison, 511, 529
685-86 copy playback, 511
closing time, 148 direct-response, 647—54
commercials, 428-43 hidden-offer, 518, 529
limitations of, 140—41 mail-order ad, 516
See also Commercials, television matched-set comparison, 523, 529
corporate industrial advertising, 673—74 paired comparison, 514, 529
delayed telecast, 142 playback, 513—14
direct-response advertising, 655 readership, 511-12, 529
early history of, 19—20 recognition, 511
forms of usage, 141—47 store sales, 525, 529
frequency, 157 theater plan, 518
fringe time, 147 unaided-recall, 513, 529
impact on advertising, 139 Texas Food Journal, 658
local, 141, 607 Text type, 395
make-goods, 149 Textile Fiber Products Identification Act,
in a market, use of, 159—60 683
markets, defining, 158 Thain, Gerald J., 680
mini-laser system, 162 Theater testing, 518
network, 141—44 Theatrical films, 277
number of sets in U.S., 139 Thom McAn, 580
participations, 144 Thomas’ Register of American
penetration, 156 Manufacturers, 672
planning: Thompson, J. Walter, agency, 431, 438,
elements of, 149—67 441, 515, 553, 571
network buying, 159 Tietjen, Karl H., 299
spot buying, 159—60 Time, 220, 221, 223, 236, 522, 673
prime time, 147 Time buying:
product protection, 149 network, 144, 159
production, 434-43, 629-31 radio, 187—88
programming diversity, 140 spot, 159-60
public-service, 60 television, 145—47
rates, 147-48 Time classifications:
ratings, 142, 656 radio, 175-76
reach, 157 television, 145—47
in retailing, 629—31 Time discounts, newspapers, 197
satellite, 165 Time-Life Books, 654
schedules, basic planning of, 159-60 Timex, 119, 342
self-regulation by, 685 Timing, 125
sponsorship, 142—44 of automobile advertising, 127
spot, 141, 142, 167 of media strategy, 125—27
spot schedule, 159—60 pulsation, 126—27
Standard Billing Month, 147 of radio commercials, 446
Standard Billing Week, 147 seasonal program, 125
station, in retail advertising, 630—31 steady program, 126-27
station representatives, 149 Timken, 674
structure, 141 Tinker, M.A., 399
time buying, 144-48, 159-60 Toilet Goods Association, 601
time classifications, 145—47 Toro mowers, 83
time sales, 142 Total Audience Plans, 176
time scheduling, in direct-response Total bus, 267
advertising, 64l Total cereal, 493
trade practices, 148—49 Total concept advertising, 339
UHF stations, 160 Total readership, of magazines, 227
VHF stations, 160 Total total bus, 267
Television Age, 596 Town criers, 4
Townley, Preston, 52 Transportation Display, Inc., 268
Tracking measures, 526—27 Travelodge International, 189—91
Trade advertising, 58, 63 Trend-line studies, 529
Trade association advertising, 69 Trends:
Trade associations, 57, 576, 577 in American life-styles, 300-303, 533
Trade deals, 502 in direct-response advertising, 656
Trade names, 459 in magazines, 233-36
Trade papers, 502, 658-63 in marketing, 102
AIA Media Data Form, 662, 663 in newspapers, 214
circulation audits, 662 in outdoor advertising, 258
controlled circulation, 658—62 in packaging, 470—71
copy, 662—63 in radio, 188
editorial policy, 662 in television, 165—66
Trademarks, 20, 53, 89, 459—68, 535 Trevira, 298
certification marks, 468 "Trivial differential,’’ 26—29
creating, 463—64 "Truth in Advertising,” 686—87
defined, 459 Tuborg, 241
distinguished from trade names, 459 TV commercials production department,
forms of, 461—63 in agency, 573
house marks, 467 TWA, 87, 275, 276
importance of, 36—37 Two-way cable communication, 164
legal requirements of, 459—62 Typesetting, major methods, 403—9
for new product, 535 Typographer, advertising, 400—402
registering, 464—65, 692 advertising typographer, 400—402
service marks, 468 caps and lowercase, 399
user generically, 465—67 display type, 395
Trade-out syndicated shows, 589 leading, 399
Traditional department store advertising, for outdoor advertising, 257
608-20 proofreader’s marks, 403
advertising department, structure of, type families, 398, 399, 401
613-14 type fitting, 400
budget, 614—16 type font, 397—99
promotional, 609 type measurement, 395—97
Traffic Audit Bureau (TAB), 252 typefaces, 394—95
Traffic department, in agency, 573
Traffic flow, 254—57 U
Training course, in advertising agencies,
697-98 UHF stations, 160—61
Transcription, radio, 454 Ultra-Brite toothpaste, 105
Transcription network, 174 Unaided-recall tests, 513, 529
Transit advertising, 120, 122, 259—68 Union scale, 436—37
defined, 259 United Fruit Company, 278
exterior, 265—68 Unity Buying Service, 639
basic bus, 267 Universe, 320
posters, 267—68 Unstructured research, 326—28
rates, 266—67 US. News & World Report, 112, 673
showings, 268 U.S. Time Company, 119
sizes of units, 265
SRDS information, 261 V
total bus, 267
total total bus, 267 Value goals, 34, 49
trains and air terminals, 268 VanSant, Dugdale and Company, 327
interior, 259-64 Vaseline, 469
basic bus, 267 Venet Advertising Inc., 56
buying space, 262—64 Venture Stores, 64
circulation, 261 Verified Audit Circulation Company
standard sizes, 261 (VAC), 662
Take One, 262 Vertical industrial publications, 668
Transit Advertising Association, 260 VHF stations, 160—61
Transit Advertising Measurement Bureau, Video, 428
259 Videotape, 165, 434, 435
Transportation, 7—8 Vincent, Raoul, 217
Index Visualization, 356—67 Wilson, Woodrow, 16
750 Vitt Media International, 186, 187, 584-85 Wind, Yoram, 102
Volkswagen, 38, 49, 295, 513 Winick, Charles, 288—89
Volvo, 386-88 Women’s Wear Daily, 658
Vos, Frank, 637 Wood, James Playsted, 16, 22
Vosburgh, R.G., 306 Wool Council, 57, 234-35, 468
Wool Products Labeling Act, 683
W Woolworth, 622
World Book Encyclopedia, 637
Wall Street Journal, 290, 522, 673 World War I, advertising in, 16—17
Wallpaper Council, 57 World War II, advertising in, 87
Wanamaker’s, 77 Writing:
Wankel engine, 79 radio commercials, 445—47
War Advertising Council, 19 television commercials, 429, 434
Warner, W. Lloyd, 292, 307
Washington Cattleman, 232 X
W ashingt on Post, 117
Waterman pens, 100 Xerox, 83, 143
Watkins, Myron W., 41
Wave scheduling, 126 Y
Wedgwood china, 36
Weekly package plans, radio, 176—77 Yankelovich, Daniel, 99, 100, 301
Weight Watchers, 468, 471 Yankelovich Report, 445, 550
Weinberg, Robert S., 601-2 Yellow Pages, 280, 345, 509
Wells, William D„ 303 Young & Rubicam, 571
Western Electric, 580
Westinghouse Broadcasting Company, 183 z
Westinghouse Electric Company, 38, 340,
343, 345, 347, 504-6 Zayre, 622
Weyerhaeuser Company, 520-21 Zeltner, Herbert, 126
Wheeler-Lea Act, 18, 678 Zenith hearing aids, 341
Whitmier and Ferris, 248 Zerex antifreeze, 318
Wilkinson, M.E.A., 238 Zielske, Hubert, 124, 125
Williams, J.B., drugs, 56 Zoom, in TV commercials, 436
h